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A Shop Owner Uses a Reorder Point Approach to Restocking

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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%?


Definitions:

Isopropylbenzaldehyde

A compound with a benzene ring attached to an isopropyl group and an aldehyde group.

Structure

The arrangement of atoms or molecules in a substance, defining its chemical and physical properties.

Boiling Point

The specific temperature at which a liquid undergoes vaporization by equating its vapor pressure with the external atmospheric pressure.

Dichlorobenzene

An organic compound consisting of a benzene ring with two chlorine atoms attached, used widely as an industrial solvent and chemical precursor.

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