Thomas manufacturing company in dubuque ia stocks a, Operation Management

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Thomas manufacturing company in dubuque ia stocks a

Thomas Manufacturing Company in Dubuque, IA stocks a high-volume item that has a normally distributed demand. The average annual demand is at 17,500 units, and a standard deviation of 118 units per year. The plant operates 250 days per year. If the lead time is 4 days,

a. How much safety stock provides a 97% service level to Thomas?

b. What should the reorder point be?

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