The average daily demand for Lenovo laptop computers at a Circuit Town store is 15, with a

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The average daily demand for Lenovo laptop computers at a Circuit Town store is 15, with a standard deviation of 5 units. The lead time is constant at 2 days. Find the reorder point if management wants a 90% service level (i.e., risk stockouts only 10% of the time). How much of this is safety stock?

APPROACH c Apply Equation (12-15) to the following data:

Average daily demand (normally distributed) = 15 Lead time in days (constant)= 2 Standard deviation of daily demand = sd = 5 5 Service level = 90%

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