Assuming that demand is normally distributed (mean of 250 units, standard deviation of 75 units per period)

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Assuming that demand is normally distributed (mean of 250 units, standard deviation of 75 units per period) and a lead time of 3 periods (with a standard deviation of 2 periods), what reorder point will guarantee that no more than 5 percent of order cycles will have one or more stockouts? (Choose the best answer.)

a. 1,750 units

b. 1,850 units

c. 1,950 units

d. 2,000 units

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