Average Daily Demand for a Product Is Normally Distributed with a Mean

question 35

Essay

Average daily demand for a product is normally distributed with a mean of 5 units and a standard deviation of 1 unit.Lead time is fixed at four days.
(a)What is the reorder point if there is no safety stock?
(b)What is the reorder point if the service level is 80 percent?
(c)How much more safety stock is required if the service level is raised from 80 percent to 90 percent?

---

Definitions:

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the indorser or specifies conditions for the payment.

Indorser

An entity or person who signs the back of a negotiable instrument, such as a check or promissory note, thereby transferring ownership or guaranteeing payment to another party.