Given the Following Information:
Order Quantity = 40
Expected Demand $\sigma$

question 1

Essay

Given the following information:
Order quantity = 40
Expected demand during lead time = 20 units
$\sigma$ d LT = 10
desired annual service level = .99
Find:
(i)the expected number of units short per cycle
(ii)the required ROP

---

Definitions:

Market Value

The amount for which something can be sold on a given market.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and the potential to receive dividends.

Long-term Investment

Investments held for an extended period, typically more than one year, with the intention of earning returns over time.