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Problem 1 2 - 2 4 ( Static ) One item a computer store sells is supplied by a vendor who handles only that Item.
Problem Static
One item a computer store sells is supplied by a vendor who handles only that Item. Demand for that item recently changed, and the store manager must determine when to replenish it The manager wants a probability of at least percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of two units a day. Lead tIme is varlable, averaging four days with a standard deviation of one day. Assume normality and that seasonality is not a factor. Use Table.
a When should the manager reorder to achleve the desired probability? Round your Intermedlate calculations and final answer to decimal places.
ROP
b Which of the following assumptions would be violated if seasonality were present?
Constant lead time
Demand and lead time Independence
Constant demand
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