Problem
You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron, a spice (generally) worth more by weight than gold. You order saffron from an overseas supplier with a shipping lead time of four weeks. Average weekly demand is normally distributed with a mean of 40 ounces and a standard deviation of 30 ounces.
To achieve a 0.95 in-stock probability, what level of Safety Stock should you choose?