Daily Demand for a Product Is Normally Distributed with a Mean

question 97

Essay

Daily demand for a product is normally distributed with a mean of 200 units and a standard deviation of 20 units.The firm currently uses a reorder point system,with a lead time of 4 days.
(a)What safety stock provides a 50% service level?
(b)What safety stock provides a 90% service level?
(c)What safety stock provides a 99% service level?

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Definitions:

Spouses

Legally married partners or significant others in a committed relationship.

Remarry

The action of getting married again after a previous marriage has ended, either through divorce or the death of a spouse.

Marry

To enter into a legally recognized union with someone, typically as recognized by law or custom, establishing a partnership that is intimately and socially acknowledged.

Married

A legal or formally recognized union of two people as partners in a personal relationship.