Question
. Just-in-time ordering. A factory has a just-in-time ordering policy for an important component in the product it manufactures and its supplier guarantees delivery of
. Just-in-time ordering. A factory has a "just-in-time" ordering policy for an important component in the product it manufactures and its supplier guarantees delivery of ordered components within 30 days. Historical data shows that components arrive on average within 24 days from ordering, the
standard deviation is 4 days, and delivery times follow a normal curve closely.
(a) What percent of components are received within 30 days of ordering?
(b) Orders are "flagged" for special monitoring on the 24th day after
ordering if they haven't yet arrived. What percent of these flagged
orders arrive within 30 days of ordering? What percent of these
flagged orders arrive more than 30 days after ordering?
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