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:

Lacrimal

Pertaining to tears or the glands that produce tears.

Lambdoid

Referring to the lambdoid suture, a dense, fibrous connective tissue joint that lies between the parietal and the occipital bones at the posterior part of the skull.

Sagittal

A term referring to a plane or section that divides the body or any of its parts into right and left sections.

Frontal

Pertaining to the forehead or the anterior part of the brain's frontal lobes involved in decision making and problem-solving.