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A jewelry firm buys semiprecious stones to make bracelets and rings. It uses 8 0 stones a day in its process. The person who orders
A jewelry firm buys semiprecious stones to make bracelets and rings. It uses stones a day
in its process. The person who orders the stones replenishes the stock as soon as the amount on
hand drops to stones. The delivery time of orders is normal with an average of days and a
standard deviation of day. Calculate the risk of a stocking out of semiprecious stones before an
order arrives.
Hint: Find the service level from the ROP and then find the stockout risk.
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