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Suppose That Lead-Time Demand Is Normally Distributed with a Mean

question 41

Essay

Suppose that lead-time demand is normally distributed with a mean of 100 units and a standard deviation of 20 units.If a firm wants to maintain a 97% service level,what should the reorder point be?


Definitions:

Respondents

Individuals or entities that provide answers or responses to surveys, questionnaires, interviews, or other forms of inquiry.

Random Sample

A subset of individuals chosen from a larger set, or population, where each individual has an equal chance of being selected.

Equal Chance

The principle of providing everyone with the same opportunity without discrimination or preference.

Population

The total number of people living in a particular area, country, or the world, or a specific group of individuals within a larger community.

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