Average Daily Demand for a Product Is Normally Distributed with a Mean

question 151

Essay

Average daily demand for a product is normally distributed with a mean of 5 units and a standard deviation of 1 unit. Lead time is fixed at four days.
a. What is the reorder point if there is no safety stock?
b. What is the reorder point if the service level is 80%?
c. How much more safety stock is required if the service level is raised from 80% to 90%?

---

Definitions:

Recruitment

Recruitment is the process of attracting, screening, and selecting qualified candidates for a job within an organization.

Privatization Movement

a trend or policy initiative focused on transferring the ownership of businesses or services from the public sector to private individuals or organizations.

Glass Ceiling

An invisible barrier that prevents certain individuals, often women and minorities, from advancing to higher levels of leadership and management.

Career Progression

The advancement or movement of an individual through a series of jobs or career stages, often accompanied by increased responsibility and salary.