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Demand for a Product Is Approximately Normal,averaging 5 Units Per

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Demand for a product is approximately normal,averaging 5 units per day with a standard deviation of 1 unit per day.Lead time for this product is approximately normal,averaging 10 days with a standard deviation of 3 days.What reorder point provides a service level of 90 percent?


Definitions:

Residual Claimant

An individual or entity entitled to a share of a company's assets only after all debts and other obligations have been met in the event of liquidation.

Unlimited Liability

A legal structure wherein the business owners are personally responsible for all the debts and liabilities of the business.

Voting Rights

The rights of shareholders to vote on company matters, typically exercised at annual meetings and proportional to the number of shares held.

Dividend Paid

The portion of earnings a company distributes to its shareholders, typically expressed as a dollar amount per share.

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