A utility company lays cable for a number of utilities. The company's daily demand for cable is normally distributed with a mean of 2050 feet and a standard deviation of 363 feet. When cable is ordered from the supplier, it requires 7 days to arrive.

Ans. choices are given and a picture of a z table with normal value curves is given.

1. What is the reorder point if the company wants to limit the probability of a stockout to 11 percent?

a. 14,073ft b. 15,531ft c. 15,848ft d. 14,642ft e. 13,997ft

2. What is the approximate service level if the company reorders when the cable inventory reaches 15,800 feet?

a. 93.45% b. 86.71% c. 85.22% d. 88.78% e. 92.60%

3. What is the reorder point if the company only wants to provide a 13% service level?

a. 13,265ft b. 18,044ft c. 13,970 ft d. 15,411 ft e. 14,039ft

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & & & & & & & & & & \\ \hline z & 0.00 & 0.01 & 0.02 & 0.03 & 0.04 & 0.05 & 0.06 & 0.07 & 0.08 & 0.09 \\ \hline 0.0 & .0000 & .0040 & .0080 & .0120 & .0160 & .0199 & 0239 & .0279 & .0319 & .0359 \\ \hline 0.1 & .0398 & .0438 & .0478 & .0517 & .0557 & .0596 & .0636 & .0675 & .0714 & .0753 \\ \hline 0.2 & .0793 & .0832 & .0871 & .0910 & .0948 & .0987 & .1026 & .1064 & .1103 & .1141 \\ \hline 0.3 & .1179 & .1217 & .1255 & .1293 & .1331 & .1368 & .1406 & .1443 & .1480 & .1517 \\ \hline 0.4 & .1554 & .1591 & .1628 & .1664 & .1700 & .1736 & .1772 & .1808 & .1844 & .1879 \\ \hline 0.5 & .1915 & .1950 & .1985 & .2019 & .2054 & 2088 & .2123 & .2157 & 2190 & 2224 \\ \hline 0.6 & .2257 & .2291 & .2324 & .2357 & .2389 & .2422 & 2454 & 2486 & .2518 & 2549 \\ \hline 0.7 & .2580 & .2612 & .2642 & .2673 & .2704 & .2734 & .2764 & .2794 & .2823 & 2852 \\ \hline 0.8 & .2881 & .2910 & 2939 & 2967 & 2995 & .3023 & .3051 & .3078 & .3106 & 3133 \\ \hline 0.9 & 3159 & .3186 & 3212 & 3238 & 3264 & 3289 & .3315 & 3340 & .3365 & 3389 \\ \hline 1.0 & .3413 & .3438 & .3461 & 3485 & .3508 & .3531 & .3554 & .3577 & .3599 & 3621 \\ \hline 1.1 & .3643 & .3665 & .3686 & .3708 & .3729 & .3749 & .3770 & .3790 & .3810 & .3830 \\ \hline 1.2 & .3849 & 3869 & .3888 & 3907 & .3925 & 3944 & .3962 & .3980 & 3997 & 4015 \\ \hline 1.3 & .4032 & .4049 & .4066 & .4082 & .4099 & .4115 & .4131 & .4147 & .4162 & 4177 \\ \hline 1.4 & .4192 & .4207 & .4222 & .4236 & .4251 & .4265 & .4279 & .4292 & .4306 & 4319 \\ \hline 1.5 & .4332 & .4345 & 4357 & .4370 & 4382 & .4394 & .4406 & .4418 & 4429 & .4441 \\ \hline 1.6 & .4452 & .4463 & .4474 & .4484 & .4495 & .4505 & .4515 & .4525 & .4535 & .4545 \\ \hline 1.7 & .4554 & .4564 & .4573 & .4582 & .4591 & 4599 & .4608 & .4616 & .4625 & .4633 \\ \hline 1.8 & .4641 & 4649 & 4656 & .4664 & .4671 & .4678 & .4686 & 4693 & .4699 & 4706 \\ \hline 1.9 & .4713 & .4719 & .4726 & 4732 & .4738 & .4744 & .4750 & .4756 & .4761 & 4767 \\ \hline 2.0 & .4772 & 4778 & .4783 & .4788 & .4793 & .4798 & .4803 & .4808 & .4812 & .4817 \\ \hline 2.1 & .4821 & .4826 & .4830 & .4834 & 4838 & .4842 & .4846 & .4850 & .4854 & 4857 \\ \hline 2.2 & .4861 & .4864 & .4868 & .4871 & .4875 & .4878 & .4881 & 4884 & 4887 & .4890 \\ \hline 2.3 & .4893 & .4896 & .4898 & .4901 & .4904 & .4906 & .4909 & 4911 & .4913 & 4916 \\ \hline 2.4 & .4918 & .4920 & 4922 & .4925 & .4927 & .4929 & .4931 & .4932 & .4934 & 4936 \\ \hline 2.5 & 4938 & .4940 & 4941 & .4943 & .4945 & .4946 & 4948 & .4949 & .4951 & .4952 \\ \hline 2.6 & .4953 & .4955 & .4956 & .4957 & .4959 & .4960 & 4961 & .4962 & 4963 & 4964 \\ \hline 2.7 & .4965 & .4966 & 4967 & .4968 & 4969 & .4970 & 4971 & 4972 & 4973 & .4974 \\ \hline 2.8 & 4974 & .4975 & .4976 & .4977 & .4977 & .4978 & 4979 & 4979 & 4980 & .4981 \\ \hline 2.9 & .4981 & 4982 & 4982 & .4983 & 4984 & .4984 & .4985 & .4985 & 4986 & 4986 \\ \hline 3.0 & .49865 & .49869 & 49874 & .49878 & 49882 & .49886 & .49889 & 49893 & 49897 & 49900 \\ \hline \end{tabular}