Expected Value. Thoran Electronics Company began to produce pacemakers last year. At that time. the company forecast the need for 10.000 integrated circuits per year. During the first year, the company placed orders when the inventory dropped to 600 units, so that it would have enough to produce pacemakers continuously during a three-week lead time. Unfortunately, the company has run out of this component on several occasions, causing costly production delays. Careful study of this experience has resulted in the following expectations set for the coming year. Lead Time Weekly Related Probability of age 250 units 3 weeks 130 units 2 weeks 1.0 Related Probability ol Lead Tame

a. Determine the expected average usage during a regular production week.

b. Calculate the expected usage during lead time. (CMA adapted) E