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I buy and sell laser printer toners. The demand rate is 2 0 0 0 units per month, and its standard deviation is 7 0
I buy and sell laser printer toners. The demand rate is units per month, and its standard deviation
is units. Note: this is not a variance. Assume the demand follows a normal distribution. If I order it
it takes weeks on average for its delivery and its standard deviation is week. One month is four
weeks. Now, I have units in stock. If I order units now, what is the probability of having a
shortage cycle. Use the time unit of month. month weeks
a points Get the distribution of the demand during lead time
b points Get the probability
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