Daily Demand for a Product Is Normally Distributed with a Mean

question 60

Essay

Daily demand for a product is normally distributed with a mean of 160 units and a standard deviation of 12 units. The firm currently uses a reorder point system, and seeks a 75% service level during the lead time of 9 days.
a. What safety stock is appropriate for the firm?
b. What is the reorder point?

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Definitions:

Cladistic Character

A feature of organisms used in cladistics to help establish evolutionary relationships, focusing on shared derived characteristics.

Ancestral Character

a trait or characteristic that was present in the common ancestor of a group of species and may be retained or altered in its descendants.

Hair

A thin strand of keratin that grows from the skin of mammals.

Shared Homologous Structures

Anatomical features that are similar in different species due to shared ancestry, indicating evolutionary relationships.