Question: Example 9: Consider an economic order quantity case where annual demand D=2,000 units, economic order quantity Q=200 units, the desired probability of not stocking out

Example 9: Consider an economic order quantity

Example 9: Consider an economic order quantity case where annual demand D=2,000 units, economic order quantity Q=200 units, the desired probability of not stocking out P=0.95, the standard deviation of demand during lead time, LT=20 units, and lead time is 15 days. Determine the reorder point. Assume that demand is over a 250 -workday year. (z=1.64)

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