Answer:
The optimal stocking level is 243 boxes
Step-by-step explanation:
In order to calculate the optimal stocking level we would have to calculate the following formula:
optimal stocking level=mean+(Z* standard deviation)
According to the given data we have the following:
mean=250 boxes per day
standard deviation=22 boxes
To calculate the z value we would have to calculate the service level as follows:
service level=shortage/(shortage+overage)
service level=3/(3+5)
service level=0.38
Hence, z value is -0.31
Therefore, optimal stocking level=250 + (-0.31 * 22)
optimal stocking level=243 boxes
The optimal stocking level is 243 boxes