Buy-More stocks color graphics monitors. The daily demand is normally distributed with a mean of 1.6 monitors

Question:

Buy-More stocks color graphics monitors. The daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitors. The lead time to receive an order from the manufacturer is a constant 15 days.

a. Determine the reorder point that will achieve a 98% service level. ( z value = 2.05).

b. What is the reorder point if the lead time is not consistent at 15 days, but has a standard deviation of 0.5 days?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...