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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Definitions:

Distribution Networks

The channels and pathways through which a product or service is delivered to customers.

Physical Flows

The movement of goods and materials through the supply chain from suppliers to customers.

Ownership Structures

The way in which the ownership of a company or property is organized, which can influence control, decision-making, and financial benefits.

Online Book Store

A digital platform that sells books and possibly related items through the internet, allowing customers to purchase and receive products electronically or via shipping.