Question: Consider a perishable product whose daily demand can range from a low of 5 1 to a high of 8 0 . Demand is uniformly

Consider a perishable product whose daily demand can range from a low of 51 to a
high of 80. Demand is uniformly distributed over this range, so that sales of the product are
equally likely to be anywhere from 51 to 80. Unsold units at the end of the day must be
discarded.
a) The retailer selling the product wishes to maintain an 85% service level (i.e., probability of
fulfilling demand should be at least 0.85). How many units should the retailer order each day?
b) What is the minimum number of additional units that the retailer should order each day if the
desired service level is increased to 95%?

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