Question: Demand is variable and the average demand is equal to 30 units per day, with a lead time standard deviation of demand equal to 5

Demand is variable and the average demand is equal to 30 units per day, with a lead time standard deviation of demand equal to 5 units. The order lead time is constant and equal to 5 days. You want a 98 % service level (see your Z-table). What is the approximate reorder point?

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!