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Daily Demand for a Product Is Normally Distributed with a Mean

question 100

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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 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?


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The quality of being trustworthy and reliable, consistent in performance or behavior.

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