Question
The monthly demand faced by a firm can be modelled by a Normal distribution with mean value 100 and standard deviation 10. The firm aims
The monthly demand faced by a firm can be modelled by a Normal distribution with mean value 100 and standard deviation 10. The firm aims to open a new Distribution Center (DC), so the challenge is to determine the monthly capacity of it. a) Based on the expected demand, what should be the capacity of the center? b) If the firm decides to open a DC with a mothly capcity of 150 units, what is the probability that the DC is not able to meet the demand? c) If the firm aims to get a service level (demand coverage) of at least 95%, what should be the capcity of this center? d) How your previous answer would vary if the monthly demand follows an Uniform distribution in the interval [25,175]
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