Question: ROP for variable demand rate and variable lead time. The motel replaces broken glasses at a rate of 25 per day. In the past, this
ROP for variable demand rate and variable lead time. The motel replaces broken glasses at a rate of 25 per day. In the past, this quantity has tended to vary normally and have a standard deviation of three glasses per day. Glasses are ordered from a Cleveland supplier. Lead time is normally distributed with an average of 10 days and a standard deviation of 2 days. What ROP should be used to achieve a service level of 95 percent?
Step by Step Solution
3.43 Rating (156 Votes )
There are 3 Steps involved in it
d 25 glasses per day LT 10 days OLT ... View full answer
Get step-by-step solutions from verified subject matter experts
