Suppose the annual demand for Soni DVD players at an appliance store is normally distributed with mean

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Suppose the annual demand for Soni DVD players at an appliance store is normally distributed with mean 150 and standard deviation 45. When the store orders these DVD players from its supplier, it takes an amount of time L for the order to arrive, where L is measured as a fraction of a year. In each of the following, find the mean µLD and the standard deviation σLD of the demand during lead time.

a. Assume that L is known to be 3/52, that is, three weeks.

b. Assume that L is uncertain, with mean 3/52 and standard deviation 1/52.

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Practical Management Science

ISBN: 1497

5th Edition

Authors: Wayne L. Winston, Christian Albright

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