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1.H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item.Demand for this is normally distributed, with an
1.H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item.Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of 16.The average delivery time is 5 days, with a standard deviation of 2 days.Delivery time has been found to be normally distributed.A 96% service level is desired.
a.What is the standard deviation of demand during the lead time?
b.How much safety stock should be carried?What should be the reorder point?
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