While waiting for an order to arrive from its supplier (known as the lead time), the golf-department

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While waiting for an order to arrive from its supplier

(known as the lead time), the golf-department manager at a local Dick’s Sporting Goods store will sell an average of 60 boxes of Titleist golf balls. Assume the demand during the lead time for the balls follows a normal distribution with a standard deviation of 12 boxes. Determine the reorder point that will ensure the store a 95% probability that it will have enough inventory of golf balls until the next order arrives.

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Business Statistics

ISBN: 9780133852288

2nd Edition

Authors: Robert A Donnelly, Robert Donnelly Jr

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