Question
the circuit town store sells an average of 150 packs of 9-volt batteries perday. the daily demand follows a normal distribution with a standard deviation
the circuit town store sells an average of 150 packs of 9-volt batteries perday. the daily demand follows a normal distribution with a standard deviation of 20 packs. the supplier, who is located in another state has an average of 1 day.
a. to maintain a 95% service level for this product with rop is appropriate?
b. suppose lead time has a standard deviation of 0.5 day, then what is rop?and why is it different from a.
c. suppose there is another store has exactly the same information and we want to aggregate them, then what is the ROP?
d. if the supplier always reorders when inventory level is 200. then what is the service level? why is it different from a?
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