Answer:
D
Step-by-step explanation:
Answer:
1.649 approximately 2
Step-by-step explanation:
S.d = standard deviation = 0.5
Time taken = lead time = 2 weeks
Mean = demand for week = 5 boxes
We are required to find the safety stock to maintain at 99% service level.
At 99% level, the Z value is equal to 2.326.
Therefore,
Safety stock = z × s.d × √Lt
= 2.326 × 0.5 x √2
= 1.649
Which is approximately 2.