Question: (5 pts). The company performs the continuous inventory system. The demand for an electronic component is normally distributed with an average daily demand of 1000

(5 pts). The company performs the continuous
(5 pts). The company performs the continuous inventory system. The demand for an electronic component is normally distributed with an average daily demand of 1000 units, and a standard deviation of 100. The constant lead time for the component is two weeks. If the company sets a reorder point of 14,087 for this component then its service level is approximately Table. Z-value with the associated service level Z value 0.84 1.28 1.65 23 Associated service level (%) 80 90 95 99 99 percent 0 90 percent 80 percent 95 percent

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