A Product's Usage Is Normally Distributed with a Weekly Average

question 54

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.