Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In a safety stock problem where both demand and lead time are variable, demand averages 100 units per day with a daily standard deviation of
In a safety stock problem where both demand and lead time are variable, demand averages 100 units per day with a daily standard deviation of 10, and lead time averages 28 days with a standard deviation of 2 days. What should the (approximate) reorder point be for a 95% service level? (Do not round intermediate calculations. Round answer to the nearest whole number.)
OA. 340 units
OB. 4,445 units
OC. 2,817 units
OD. 2,997 units
OE. 3,140 units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started