Question: Given this information Lead time demand = 900 lbs. Standard deviation of lead time demand = 50 lbs. (assume normality) Acceptable stockout risk during lead

Given this information

  • Lead time demand = 900 lbs.
  • Standard deviation of lead time demand = 50 lbs. (assume normality)
  • Acceptable stockout risk during lead time = 2.5%

When should this item be reordered i.e., ROP?

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