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Table 5.95.9 Demand =140= 140 Units // Wee K
Standard Deviation in Weekly Demand

question 151

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Table 5.95.9
Demand =140= 140 units // wee k
Standard deviation in weekly demand =21= 21 units
Ordering cost =$20/= \$ 20 / order
Holding cost =$1= \$ 1 per unit per year
Cycle- service level =85= 85 percent
Lead time =6= 6 weeks
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.9. Assume demand during lead time to be normally distributed. For a continuous review system, what should be the reorder point (R) ?


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