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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