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Question: Dreyfus Company has a policy of counting on-hand inventory of one of its products every 45 days. When a replenishment order for the product is placed with the supplier, lead time is 8 days. Demand for the product averages 6 units per day with a standard deviation of 1.5 units. It has just been determined that the company currently has 42 units on hand. How many units should the company order if it strives to maintain a 99% service level on this item?

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Operation Management, Management Studies

Category:- Operation Management
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