Daily Demand for a Product Is Normally Distributed with a Mean

question 105

Essay

Daily demand for a product is normally distributed with a mean of 150 units and a standard deviation of 15 units.The firm currently uses a reorder point system,and it seeks a 75% service level during the lead time of 6 days.
a.What safety stock is appropriate for the firm?
b.What is the reorder point?

---

Definitions:

English

A West Germanic language originating in England and now the primary language of numerous countries and an official language worldwide.

Global Village

A concept referring to the world as being interconnected through the use of electronic communication technologies, making distance and geographical location less significant.

Cultural Process

The dynamic and continuous way in which cultures are created, maintained, and changed over time through human activities and interactions.

Cultural Fragmentation

The process or state in which culture is divided into smaller segments, often leading to a loss of coherence or unity.