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

question 151

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%?
c. How much more safety stock is required if the service level is raised from 80% to 90%?

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Definitions:

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Overwhelming Anxiety

A state of extreme nervousness or worry, often with physical symptoms, that disrupts daily functioning.

Flashbacks

Sudden, intense, and vivid recollections of past experiences, often associated with trauma.

Major Depressive Disorder

A mental health condition characterized by a persistent feeling of sadness and loss of interest, affecting daily functioning.