The Demand for an Electronic Component Is Normally Distributed with an Average

question 72

Multiple Choice

The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviation of 50.The lead-time for the component is 9 days.If a service level of 95% is desired then the company's reorder point for this component is approximately

• A)3,785 units.
• B)4,500 units.
• C)4,627units.
• D)4,747units.