A Product's Usage Is Normally Distributed with a Weekly Average

question 6

Multiple Choice

A product's usage is normally distributed with a weekly average demand of 2,000 units and a weekly standard deviation of 125. The lead time for the product is 4 weeks. If the company would like to have a service level of 90% for this product then the reorder point is approximately

• A) 8,320 units.
• B) 9,218 units.
• C) 10,134 units.
• D) 11,244 units.

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