Question: Consider a fixed order quantity model whose demand has a normal distribution. Assume the lead time is L days and the average daily demand rate

Consider a fixed order quantity model whose demand has a normal distribution. Assume the lead time is L days and the average daily demand rate is d. What service level does the reorder point of R = L x d correspond to? Justify your answer.

a) 0

b) 1

c) 0.5

d) 0.75

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