Problem:
Unimed is a manufacturer of specialty medidcal equipment. For one particular variety of equipment offered:
average daily demand is 25 units, with a standard deviation of 6 units
replenishment lead time is 15 days, with a standard deviation of 4 days
Required:
Question 1) Find the safety stock required at 1 standard deviation under conditions of demand and replenishment cycle uncertainties (rounded to the nearest whole number):
A) 103 units
B) 34 units
c) 14 units
d) 68 units
Solve the problem and show all work.