= Demand /day x Lead time (in days) + safety stock
= Demand /day x Lead time (in days) + Z. Std. deviation of demand during Lead time
= 8 x 4 + 3Xz
Value of Z for service level 95% (i.e. 0.95) from standard deviation table = 1.65 (approx.)
= 8×4 +1.6×3 = 32 + 4.8 = 36.8
Therefore, answer is “c. about 38”
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