A Shop Owner Uses a Reorder Point Approach to Restocking

question 117

Essay

A shop owner uses a reorder point approach to restocking a certain raw material.Lead time is six days.Usage of the material during lead time is normally distributed with a mean of 42 kilograms and a standard deviation of 4 kilograms.When should the raw material be reordered if the acceptable risk of a stock-out is 3%?

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Definitions:

Compound Name

The official or systemic name given to a chemical compound based on its structure and composition.

Mass Spectrum

A chart that shows the distribution of masses of atoms, molecules, or fragments, used to determine the chemical composition of a sample.

Base Peak

In mass spectrometry, the most intense peak in the spectrum, corresponding to the most stable and abundant ion.

M-nitrophenol

A chemical compound that is a derivative of phenol, featuring a nitro group in the meta position relative to the hydroxyl group, used in the production of dyes, drugs, and explosives.