John Martin is in charge of maintaining hospital supplies at General Hospital. During the past? year, the mean lead time demand for bandage? BX-5 was 150150 ?(and was normally? distributed). Furthermore, the standard deviation for? BX-5 was 1111. Ms. Flynn would like to maintain a 98?% service level. Refer to the standard normal table below for? z-values.
a) What safety stock level do you recommend for? BX-5?
?b) What is the appropriate reorder? point?