A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is

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A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is 6 days. Usage of the material is normally distributed with a mean of 80 pounds per day and a standard deviation of 6 pounds. When should the raw material be reordered if the acceptable risk of a stockout is 4% (Customer service level is 96%)?

Posted Date: May 18, 2024 06:07 PM

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A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is

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