A Manager Reorders Lubricant When the Amount on Hand Reaches

question 148

Essay

A manager reorders lubricant when the amount on hand reaches 422 pounds. Average daily usage is 45 pounds, which is normally distributed with a standard deviation of three pounds per day. Lead time is nine days. What is the risk of a stockout?

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Definitions:

Balance of Trade

The difference in value between a country's imports and exports over a certain period.

Money Inflows

Money inflows refer to the incoming funds to a business, organization, or economy from various sources such as investments, sales, and loans.

Protectionism

A government policy to protect domestic industries and producers by restricting international trade, often through tariffs and quotas.

Trade Imbalances

A situation where there is an unequal value of imports and exports between two countries, leading to a surplus or deficit in trade relationships.