Workshop manager Shinji Suzuki has noted that the daily demand for the StoryKore bibimbap pots (dolsots) produced and sold by his business, Pandamonium International Cookware, located in southwest Champaign, is 24 pots. The workshop operates 365 days a year. The lead time for producing the pots is 4 days. Shinji Suzuki would like your help in figuring out a few selected questions about managing inventory.
a) Based on the information provided, please calculate and report the reorder point under the assumption of no uncertainty and therefore, no need for any safety stock.
b) Closer scrutiny of past data reveals that the standard deviation for daily sales is 9 pots. Adding this new information to that provided earlier, please calculate and report the number of pots you recommend as safety stock for a 99