Daily Demand for a Product Is Normally Distributed with a Mean

question 60

Short Answer

Daily demand for a product is normally distributed with a mean of 1,200 units and a standard deviation of 120 units. The firm currently uses a reorder point system with a lead time of 8 days.
A) What safety stock provides a 49 percent service level?
B) What safety stock provides a 98 percent service level?
C) Does doubling the service level double the amount of safety stock required? Does it double the ROP?

• A) What safety stock provides a 49 percent service level?
• B) What safety stock provides a 98 percent service level?
• C) Does doubling the service level double the amount of safety stock required? Does it double the ROP?

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Definitions:

BMI

Body Mass Index is an indicator of body fat which utilizes both height and weight to apply to both adult males and females.

Impaired Social Response

Difficulty or inability to appropriately respond to social interactions, which can be a characteristic of various mental or neurological disorders.

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refers to a significantly slower than expected development of language abilities in children, often considered a sign of developmental issues or disorders.

Obese

A medical condition characterized by excessive body fat accumulation, which presents risks to health.