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Scenario 9.10 A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular
Scenario 9.10 A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor is normally distributed with a mean of 50 units a day and a standard deviation of 10 units a day. It costs $75 to process each order and there is a 16 day lead time. The holding cost for each monitor is $20 per year and the distributor wishes to maintain a 90% service level. The distributor operates 300 days in a year. Use the information in Scenario 9.10. What is the reorder point R to satisfy a 90% cycle-service level
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