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:

Incentive Motivation

involves the drive to pursue or engage in an activity for the purpose of gaining external rewards or avoiding negative outcomes, which serve as incentives for behavior.

Transformational Properties

relates to the ability of something, such as a mathematical function or a leadership style, to change or transform entities in a way that adds value or meaning.

Energizing Properties

Characteristics or effects of a substance or activity that increase vigour, liveliness, or stamina.

Continuous Reinforcement

A schedule of reinforcement in which every correct response is followed by a reward, leading to faster learning but quicker extinction than partial reinforcement.