1) Average demand during lead time is 50 units. I have set my reorder point to R = 70 units. This means I should order when my inventory position gets down to

2)

Average demand during lead time is 50 units. I have set my reorder point to R = 70 units. How many units of safety stock am I carrying?

3)Average demand during lead time is 50 units and I want to carry 15 units of safety stock. I need to set my order point to R =

4)If I set up my order point R to have a 95% service level, which of the following are true? (Select all that apply.)

There is a 95% chance (.95 probability) that demand during lead time will be less than or equal to R

There is a 5% chance (.05 probability) that I will have inventory shortages before my order is received.

P(Demand during lead time R) = .95

Each time I order, there is a 95% chance that having R units on hand when I place the order will be enough to last through the order lead time without having inventory shortages

5)Demand during lead time is normally distributed with mean = 100 and standard deviation = 30. If I set my order point to R = 175, then my order point is how many standard deviations above the mean?