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Author Question: Average daily demand for a product is normally distributed with a mean of 20 units and a standard ... (Read 91 times)

dejastew

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Question 1

Average daily demand for a product is normally distributed with a mean of 5 units and a standard deviation of 1 unit. Lead time is fixed at four days.

a. What is the reorder point if there is no safety stock?
b. What is the reorder point if the service level is 80%?
c. How much more safety stock is required if the service level is raised from 80% to 90%?

Question 2

Average daily demand for a product is normally distributed with a mean of 20 units and a standard deviation of 3 units. Lead time is fixed at 25 days. What reorder point provides for a service level of 95%?


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Marked as best answer by dejastew on Dec 3, 2019

aidanmbrowne

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dejastew

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Reply 2 on: Dec 3, 2019
Wow, this really help


sultansheikh

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Reply 3 on: Yesterday
Excellent

 

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