Procter & Gamble (P&G) is an US -headquartered multinational consumer goods corporation. P&G maintains inventories of its wide range of products. P&G uses a fixed-quantity inventory system to manage one of its popular household cleaning products. Based on historical data, the demand for this product is normally distributed. The lead time is 2 weeks. The mean of lead time demand is 400 units and the standard deviation of lead time demand is 25 units. Due to the competitive environment, a
stockout of 2% during lead time is considered acceptable. What is the amount of safety stock that needs to be kept for this particular household product? When should the order for the product be placed?