Question: (b) Based on the historical data, you found that the demand for electric bike is 20 units per week and the standard deviation of demand

(b) Based on the historical data, you found that the demand for electric bike is 20 units per week and the standard deviation of demand is 3 units. The lead time for an order is normally 4 week. In addition, you are expecting a 95% service level. The order cost is $2 per order and the holding cost per unit per week is $5.

(d) Based on the information provided in question b, what will be the re-order point? (10 points)

Answer D

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