Question: Demand for a coffee cup is normally distributed with a mean of 18 units per week and a standard deviation in weekly demand of 5

Demand for a coffee cup is normally distributed with a mean of 18 units per week and a standard deviation in weekly demand of 5 units. The lead time is 2 weeks, and the business operates 52 weeks per year. The continuous review system called for an EOQ of 75 units and a cycle-service level of 90 percent (for 90% service level, assume the value of z=1.28 ). What is the time between reviews under periodic review system ( P system)? 4.2 weeks 6.2 weeks 8.2 weeks 2.2 weeks Daily demand of Dulcolax tablets in a drug store follows a normal distribution with an average demand of 50 strips of tablets and standard deviation of demand equal to 20 strips. It takes 4 days to supply the order placed by the drug store. (i.e., lead time). The store wants to maintain 95% customer service level (for 95% service level, assume the value of z=1.64 ) and monitors its inventory continuously. What is the approximate re-order point level? 246 256 286 276 266
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