Question: The Atlantic Paper Company produces paper from wood pulp ordered
The Atlantic Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is a constant 8,000 pounds. Lead time is normally distributed, with an average of 7 days and a standard deviation of 1.6 days. Determine the reorder point if the paper company wants to limit the probability of a stockout and work stoppage to 2%.
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