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5.10 Border, a distributor of wind-driven turbine ventilators, applies a continuous review policy to manage its inventory. The distributor orders the product from its suppliers
5.10 Border, a distributor of wind-driven turbine ventilators, applies a continuous review policy to manage its inventory. The distributor orders the product from its suppliers and re-sells it to customers. The company has set a required service level of 96%. On average, it takes 36 days from the time the purchase order is sent to the supplier to the time the distributor receives the ventilators. Average daily customer demand is 100 ventilators and standard deviation of demand is 10 ventilators. Calculate an appropriate reorder point for the distributor
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