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H Consider an SKU with normally distributed annual demand with mean 6544.56 per year, and standard deviation of annual demand 583.79. This product is ordered
H
Consider an SKU with normally distributed annual demand with mean 6544.56 per year, and standard deviation of annual demand 583.79. This product is ordered in quantities of 2500, and has a lead time of 33 days. Assume that average demand is constant throughout the year (no seasonality).
What is an appropriate (Q, R) policy for this product if management wants a 99% probability that all demand will be satisfied during each lead-time? (3 Points)
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