Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 39

The daily demand for Sunlight paint at the Rainbow Paint Store in East Ridge is normally distributed, with a mean of 26 gallons and a standard deviation of 10 gallons. The lead time for receiving an order of paint from the Sunlight distributor is 9 days. Because this is the only paint store in East Ridge, the manager is interested in maintaining only a 75% service level. What reorder point should be used to meet this service level The manager subsequently has learned that a new paint store will open soon in East Ridge, which has prompted her to increase the service level to 95%. What reorder point will maintain this service level