# solution

The demand for Gaskets in an auto repair shop is 50 per week and the lead time is 2 weeks. Due to uncertainty in different supply and demand parameters, the owner need to fix a safety stock that maintains a service level of 93%. Find the following accordingly:
1. The safety stock if the standard deviation of the demand is zero.
2. The safety stock if the standard deviation of the demand is 5 gaskets.
3. The safety stock if the standard deviation of the demand is 5 gaskets and the standard deviation of the lead time is 0.75 weeks.
4. On one diagram, sketch the probability distribution of the demand during the lead time and show the safety stock levels for part #2 and 3. Make the demand range between 0 and 200 gaskets.
Question 2:
To show that higher service level requires higher safety stock, sketch the required safety stock vs. the service level when the demand average is 1000 items and the standard deviation is 200 items. Make the service level on your x-axis with the range of (50-99%).
Why did I choose a range up to 99%, but not 100%.