Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 17

Tracy McCoy is the office administrator for the department of management science at Tech. The faculty uses a lot of printer paper, and although Tracy is constantly reordering, paper frequently runs out. She orders the paper from the university central stores. Several faculty members have determined that the lead time to receive an order is normally distributed, with a mean of 2 days and a standard deviation of 0.5 day. The faculty has also determined that daily demand for the paper is normally distributed, with a mean of 2 packages and a standard deviation of 0.8 package. What reorder point should Tracy use in order not to run out 99% of the time