The weekly demand for TVs at Lowland Appliance is normally distributed with mean 400 and standard deviation

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The weekly demand for TVs at Lowland Appliance is normally distributed with mean 400 and standard deviation 100. Each time an order for TVs is placed, it arrives exactly four weeks later. That is, TV orders have a four-week lead time. Lowland doesn’t want to run out of TVs during any more than 1% of all lead times. How low should Lowland let its TV inventory drop before it places an order for more TVs?

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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