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A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor
A distributor of computer monitors purchases the monitors from an overseas
supplier under a continuous review system. The average demand for a popular
computer monitor is normally distributed with a mean of units a day and a
standard deviation of units a day. It costs $ to process each order and
there is a day lead time. The holding cost for each monitor is $ per year
and the distributor wishes to maintain a service level. The distributor
operates days in a year.
What is the standard deviation of demand throughout the sixteenday leadtime
period?
units
units
units
units
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