Essay
Daily demand for a product is normally distributed with a mean of 160 units and a standard deviation of 12 units. The firm currently uses a reorder point system, and seeks a 75% service level during the lead time of 9 days.
a. What safety stock is appropriate for the firm?
b. What is the reorder point?
Correct Answer:
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SS = 0.67 ∙ 12 ∙ SQR...View Answer
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Correct Answer:
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