Halifax Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the

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Halifax Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of six weeks and a standard deviation of two weeks. Demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars.
a) For a 90% service level, what is the ROP?
b) What is the ROP for a 95% service level?
c) Explain what these two service levels mean. Which is preferable?

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Operations Management Sustainability and Supply Chain Management

ISBN: 978-0133764345

2nd Canadian edition

Authors: Jay Heizer, Barry Render, Paul Griffin

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