Question: AQ 3 . Inventory Management ( 1 2 marks ) Regional Supermarket is open all year round. Daily use of cash register tapes average 3

AQ3. Inventory Management (12 marks)
Regional Supermarket is open all year round. Daily use of cash register tapes average 36 rolls. Usage appears normally distributed with a standard deviation of 6.2 rolls per day.
1.[6 marks] If lead time is 5 days, what reorder point should be used to achieve a target service level of 92%?
2.[6 marks] Suppose that lead time is normally distributed with mean 4.8 days and standard deviation of 0.9 days. What is the service level if the reorder point is 240 rolls?

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