Question: Chapter 12, problem 24. One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently

Chapter 12, problem 24. One item a computer store

Chapter 12, problem 24. One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of two units a day. Lead time is variable, averaging four days with a standard deviation of one day. What is the corresponding safety stock level to achieve this stockout rate? QUESTION 14 Chapter 12, problem 24. One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of two units a day. Lead time is variable, averaging four days with a standard deviation of one day. What is the ROP that satisfies this stockout rate requirement? (Hint: In this case, ROP should be an integer.)

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