Question
The average daily demand is 10 and the standard deviation is 1.5.The lead time is 10 days. If the company reorders with 100 balls left
The average daily demand is 10 and the standard deviation is 1.5.The lead time is 10 days. If the company reorders with 100 balls left in stock (i.e. the average demand during lead time), the probability of a stockout in a cycle will be 0.5. What is the reorder point that bring the stockout probability down to 0.01?
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Accounting Chapters 1-13
Authors: Carl Warren
27th Edition
1337272108, 978-1337272100
