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Reorder point of a certain item at The Carya Glabra store is 1,000 units. Daily demand is normally distributed with a mean of 120 units
Reorder point of a certain item at The Carya Glabra store is 1,000 units. Daily demand is normally distributed with a mean of 120 units and a standard deviation of 12 units. Lead time is also normally distributed, averaging at seven days with a standard deviation of one day. Calculate the stockout risk. (Hint: First find the z-value for the reorder point.)
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