Question: Consider a periodic review system , where orders are placed every 2 0 days . The firm strives to provide a 9 5 . 0

Consider a periodic review
system, where orders are placed every
2
0
days. The firm strives to provide a
9
5
.
0
5
%
cycle service level. Demand averages
4
1
0
units per
day, and the standard deviation of demand per day is
1
0
6
units. Lead time is
9
days
(
round Z
-
values, standard deviations to two decimal
places
)
.

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