In: Statistics and Probability
I understand how to work the problem except for figuring out the z-score. Could you please explain how to find the z-score for the following problem?
The demand during the lead time is normally distributed with a mean of 40 and a standard deviation of 4. if the company wishes to maintain a 90 percent service level, how much safety stock should be held?
Mean = 40, s= 4 x= safety stock