Daily demand of a milk product is normally distributed with a mean of 100 units and standard deviation of 5. The lead time is 5 days. The ordering cost is $10 and holding cost is $0.50 per unit annually. Find out the order quantity and reorder point to satisfy a 98 percent probability of not stocking out during the lad time. Assume that sales occur over the entire period of 365 days of the year.

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Answer rating: 100% (QA)

Given Annual Demand 100 Ordering cost 10 per order Holding cost 05 per item per year No of wor... View the full answer