Question: Demand for Company A is relatively stable at an average of 200 units per week, with an estimated standard deviation of 30 units for the

Demand for Company A is relatively stable at an
Demand for Company A is relatively stable at an average of 200 units per week, with an estimated standard deviation of 30 units for the weekly demand. Company A plans to set its reorder point at 200 units, which equals the average weekly demand Company A faces. The delivery lead time is 7 days (i.e. one week). Which of the following is true? Company A should set a reorder point lower than 200 in order to have a negative safety stock buffer. If Company A set a reorder point as 200 , it has a OW chance of running out of inventory before the supplier dellvers the new order. Company A should set a reorder point higher than 200 in order to have a positive safety stock buffer. 200 is the optimal reorder point for Company A to set

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