Question: Demand for a product is Normally distributed with a mean of 4 0 0 units a month and a standard deviation of 3 0 units

Demand for a product is Normally distributed with a mean of 400 units a month and a standard deviation of 30 units a month. Lead time is also Normally distributed with a mean of 2 months and a standard deviation of 0.5 months. What reorder level gives a 95% cycle service level? What is the best reorder quantity if reorder cost is $400 and the holding cost is $10 a unit a month?
 Demand for a product is Normally distributed with a mean of

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!