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An oil refinery in Houston brings crude oil from UAE (United Arab Emirates), the journey takes on average 36 days and it has a standard
An oil refinery in Houston brings crude oil from UAE (United Arab Emirates), the journey takes on average 36 days and it has a standard deviation of 1 day. The journey has become longer as the tankers started to take longer but safer routes to avoid pirates. The refinery's daily crude oil demand is 5 tons and the standard deviation is 2 tons. What cycle service level is achieved if a full tanker leaves UAE for Houston whenever the crude oil inventory drops to 200 tons at the refinery? 1. Less than Normdist(1,0,1,1) 2. Between Normdist(1,0,1,1) and Normdist(2,0,1,1) 3. Between Normdist(2,0,1,1) and Normdist(3,0,1,1) 4. More than Normdist(3,0,1,1)
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