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A company currently has 180 units of a product on-hand that it orders every two weeks when the salesperson visits the shop. Demand for the
A company currently has 180 units of a product on-hand that it orders every two weeks when the salesperson visits the shop. Demand for the product averages 20 units per day with a standard deviation of 5 units. Lead time for the product to arrive is seven days. Management has a goal of 95% probability of not stocking out during a given cycle. The salesperson is due to come in this afternoon. How many units should be ordered? (Assume a seven-day week.)
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