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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting Volume 2
Authors: Thomas H. Beechy
5th Edition
0071091319, 978-0071091312
