Question: I f average lead time demand for a given product i s 2 0 0 units, and the reorder point i s 4 0 0

If average lead time demand for a given product is200 units, and the reorder point is400 units, then the in-stock probability must be
Group of answer choices
Less than 50%
Greater than 50%
Greater than 100%
Cannot be determined from the information provided
Equal to50%

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!

Q:

A company uses a managerial reorder point ( R , Q ) model. Let the order quantity, safety stocks and average lead time demand for a given product be equal to 5 0 0 units each. Based on the...

Q:

If average lead time demand for a given product is 2 0 0 units, and the reorder point is 4 0 0 units, then the in - stock probability must be Cannot be determined from the information provided...

Q:

The daily demand for V36 masks is normally distrbuted with a mean of 98 units and a standard deviation of 13 units. The lead time for delivery of the product is 4 days. Suppose the current reorder...

Q:

GVTech Enterprises operate on a continuous review inventory control system for one of its SKUs and manages inventory over a 4 8 week business year. The following details are provided for this item:...

Q:

Given D: Annual use of a particular item, in number of items per year Q: Number of items ordered in one purchase order, in units SS: Safety stock, in units L: Lead time, in fraction of a year 1:...

Q:

Stuck on requirement 3 Corporation is a major manufacturer of food processors. It purchases motors from $15.60 per motor. It currently takes 2 weeks to supply an order to the assembly plant. bell...

Q:

Davis Corporation is a major manufacturer of food processors. It purchases motors from Campbell Corporation Annual demand is 104,000 motors per year or 2,000 motors per week. The ordering cost is...

Q:

this is one question which is further divided into various sub parts. Could you please explain these step by step there should be 3 images Question 50 (2 points) How much safety stock should they...

Q:

If Abby were to set up a two-bin system for gloves, how many boxes of gloves would be in each bin? Annual demand 10,000 units/year Ordering cost per order (setup) S= 150 $/order Annual carrying cost...

Q:

Demand = 100,000 units/year Number of days per year = 250 weeks Standard deviation of weekly demand = 50 units Average lead time = 5 days Standard deviation of lead time: 2 days Cycle-service level =...

Q:

The quick release bolt on a bicycle front axle is under the action of a shear stress of 40 MN/m and a tensile stress of 30 MN/m. Determine (i) the state of stress at the point on another element...

Q:

In calculating net operating income, vacancy losses must be subtracted from the gross income collected. The normal range for vacancy and collection losses for apartment, office, and retail properties...

Q:

Pharoah is a Canadian company that conducts many transactions in $US . Because the price of $US fluctuates daily, Pharoah often enters into futures contracts as a way to manage risk. On September 1 ,...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...