Question: 1. Lead time is constant at 3 weeks: What is re-order point and order quantity ? 2. Lead time varies w/ a mean of 3

1. Lead time is constant at 3 weeks: What is

1. Lead time is constant at 3 weeks: What is re-order point and order quantity?

2. Lead time varies w/ a mean of 3 weeks and SD of 1 week. What is re-order point and order quantity?

Suppose the annual demand for blue-ray DVD players at an appliance store is normally distributed with a mean of 150 and a standard deviation of 45. When the store orders the DVD players, the lead time L is given in fractions of a year. In each of the following, find the mean demand during lead time, Uld, and the standard deviation of demand during lead time, Old: It costs $300 to place an order. The holding cost per DVD player in inventory is $15/year. The cost each time a customer orders a DVD player that is not in stock is estimated at $40

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