The injection molding department of a company uses an average of 30 gallons of special lubricanta day. The supply of the lubricant is replenished when the amount on hand is 170 gallons. It takesfour days for an order to be delivered. Safety stock is 50 gallons, which provides a stockout risk of9 percent. What amount of safety stock would provide a stockout risk of 3 percent? Assumenormality.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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The injection molding department of a company uses an average of 30 gallons of special lubricant
a day. The supply of the lubricant is replenished when the amount on hand is 170 gallons. It takes
four days for an order to be delivered. Safety stock is 50 gallons, which provides a stockout risk of
9 percent. What amount of safety stock would provide a stockout risk of 3 percent? Assume
normality.

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