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

question 105

Essay

Average daily demand for a product is normally distributed with a mean of 20 units and a standard deviation of 3 units. Lead time is fixed at 25 days. What reorder point provides for a service level of 95%?

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Definitions:

Dorsal Cavity

A cavity in the posterior part of the body that houses the brain and spinal cord, part of the central nervous system.

Cranial Cavity

The space within the skull that encases and protects the brain.

Vertebral Cavity

The body cavity that houses the spinal cord within the vertebral column, providing protection and support.

Epigastric Region

The upper central region of the abdomen, located just below the sternum.