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The weekly demand for TVs at Lowland Appliance is normally distributed with mean 375 and standard deviation 95. Each time an order for TVs is
The weekly demand for TVs at Lowland Appliance is normally distributed with mean 375 and standard deviation 95. Each time an order for TVs is placed, it arrives exactly four weeks later. That is, TV orders have a four-week lead time. Lowland doesn't want to run out of TVs during any more than 1% of all lead times.
The data has been collected in the Microsoft Excel Online file below. Round your answer down to the nearest whole number.
How low should Lowland let its TV inventory drop before it places an order for more TVs? (Hint: How many standard deviations above the mean lead-time demand must the reorder point be for there to be a 1% chance of a stockout during the lead time?)