Question
A local gas station waits 4 days to receive a delivery of regular gasoline to replenish its inventory. The wait period to receive inventory is
A local gas station waits 4 days to receive a delivery of regular gasoline to replenish its inventory. The wait period to receive inventory is known as the lead time. The demand during the lead-time period for regular gasoline, as measured in gallons, follows the normal distribution with a mean of 930 gallons and standard deviation of 140 gallons.
The station manager places the next order for regular gasoline when the inventory is 1,200 gallons (known as the reorder point). What is the probability that the station will not run out of gasoline before the order arrives?
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