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A car dealer faces with a demand rate of 20 cars per week. In the past, this quantity has tended to vary normally and

 

A car dealer faces with a demand rate of 20 cars per week. In the past, this quantity has tended to vary normally and has a standard deviation of 3 cars per week. Cars are ordered from a distant supplier. Lead time is normally distributed with an average of 4 weeks and a standard deviation of 0.6 weeks. What reorder point (ROP) should be used to achieve a service level of 97.5%?

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