Question: Given the following information, determine the amount to order: Average demand = 20 units per day Standard deviation of demand = 4 units per day

Given the following information, determine the amount to order:

  • Average demand = 20 units per day
  • Standard deviation of demand = 4 units per day
  • Lead time = 4 days
  • Desired service level = 99.72%
  • Amount on hand at reorder time = 50 units
  • Order interval = 5 days

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