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Local bar serves a premium draft beer to its customers. The daily demand for beer is supposed to follow a normal distribution with the mean of 80 litres and the standard deviation of 16 litres. The lead time needed to receive an order of beer from local distributor is 12 days. Find out the safety stock and reorder point if the bar wants to preserve a 90% service level. What would be the raise in the safety stock if a 95% service level is desired?

Project Management, Management Studies

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