Question: Demand = 5 0 , 0 0 0 units / week Standard deviation of weekly demand = 1 5 , 0 0 0 units Average

Demand =50,000 units/week
Standard deviation of weekly demand =15,000 units
Average lead time =4 weeks
Standard deviation of lead time: 2 weeks
Cycle-service level =80%
A continuous review system is used to control inventory.
What reorder point should the firm use for this product?
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Demand =50,000 units/week Standard deviation of weekly demand =15,000 units Average

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