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

question 35

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 percent?
(c)How much more safety stock is required if the service level is raised from 80 percent to 90 percent?

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Definitions:

Prenatal Screening

Medical tests and procedures used to evaluate the health of a fetus and identify any potential genetic, congenital, or health issues before birth.

Amniocentesis

A medical procedure used in prenatal diagnosis to sample amniotic fluid using a needle inserted into the uterus, to test for fetal abnormalities and infections.

Chorionic Villus Sampling

A prenatal test where a sample of chorionic villi is taken from the placenta for genetic testing.

Amniocentesis

A medical procedure used in prenatal diagnosis, involving the extraction of a small amount of amniotic fluid to test for chromosomal abnormalities and infections.