A Shop Owner Uses a Reorder Point Approach to Restocking

question 126

Essay

A shop owner uses a reorder point approach to restocking a certain raw material.Lead time is six days.Usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of 4 pounds.When should the raw material be reordered if the acceptable risk of a stockout is 3%?

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Definitions:

American Authors

Writers from the United States who have contributed to various genres of literature, including fiction, non-fiction, poetry, and more.

Slave Trade

The historical trade in enslaved Africans, transported primarily to the Americas, which formed part of a triangular trade route involving Europe, Africa, and the Americas.

African American Culture

A combination of social, artistic, and religious practices and contributions developed by African Americans through their shared history and experience in the United States.