A company estimates that the lead time for a particular material is five days but that the

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A company estimates that the lead time for a particular material is five days but that the demand over lead time is uncertain. The distribution of demand over lead time is best approximated by the normal distribution (that is, a symmetric. bell-shaped curve). If there is a great number of possible values for the demand over lead time and if no safety stock is maintained, how frequently would a stockout be expected?

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Cost Accounting

ISBN: 9780256069198

3rd Edition

Authors: Edward B. Deakin, Michael Maher

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