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Please answer all parts with detailed explanation else downvote. Weekly demand for a certain product is normally distributed with mean 200 and standard deviation 20.
Please answer all parts with detailed explanation else downvote.
Weekly demand for a certain product is normally distributed with mean 200 and standard deviation 20. The source of supply is reliable and maintains a constant leadtime of 4 week. Management wants to satisfy a 95% probability of not running out of stock in any one ordering cycle. What should be the reorder point? Round your answer to the nearest integer value. (Note: The z value corresponding to 95% service level is 1.65.)Step by Step Solution
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