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Suppose that a firm reviews and replenishes its inventory once a week (with a week being 5 working days). Daily demand follows the normal distribution
Suppose that a firm reviews and replenishes its inventory once a week (with a week being 5 working days). Daily demand follows the normal distribution with the mean 100 units and s.t.d. 20 units. Suppose that the firm aims to achieve the service level 95%. In week 1, the inventory is 10 units before the firm places an order. How many units should be ordered in week 1?
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