A bank wants to know how low it should let the level of, Operation Management

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A bank wants to know how low it should let the level of

A bank wants to know how low it should let the level of cash fall before ordering more cash from its parent bank. If the demand during lead time for cash is normally distributed with a mean of $160,000 and the standard deviation of $20,000 and the service level is 85 percent:

a. What is the order point?

b. What is the safety stock level?

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Operation Management: A bank wants to know how low it should let the level of

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Operation Management: A bank wants to know how low it should let the level of

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