Question: 6. For a product A, if the average daily demand is 40 units, and it takes a supplier nine days to deliver an order once

6. For a product A, if the average daily demand is 40 units, and it takes a supplier nine days to deliver an order once it has been placed and the standard deviation of daily demand is 4, in order to have 95% service level, what should be the reorder point?

7. Using a periodic review model, and given an average daily demand of 300 units, 11 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of 1.96, and a standard deviation of daily demand of 3 units, what should be the order quantity for this review period?

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