Question: An electronics distributor uses a continuous review (Q) system for a popular product, the MicroTabletZ (MTZ). The MTZ has an average demand of 500 units

An electronics distributor uses a continuous review (Q) system for a popular product, the MicroTabletZ (MTZ). The MTZ has an average demand of 500 units per week. The standard deviation of weekly demand is 100 units. The average lead time is 6 weeks. The standard deviation of the lead time is 2 weeks. They would like to maintain a 98 percent cycle-service level. What is the Reorder Point for the item? (choose the range below which contains the correct answer)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!