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Dell sells 100 laptops a week on average with a standard deviation of 25. One week is needed to receive a shipment. Dell wants to maintain a service level of 99%. What should Dell set the reorder point to? What should the safety stock be? What about 97%? 95%? 93%? Make sure to use z-scores and graph the safety stock as a function of the service level.

Operation Management, Management Studies

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