Question: In a continuous review system, the average daily demand for a part is Normally distributed with mean 20 and standard deviation of 4. The lead

  1. In a continuous review system, the average daily demand for a part is Normally distributed with mean 20 and standard deviation of 4. The lead time to receive the part from the time it is ordered is 9 days. The appropriate re-order point for this part if we want a 95% service level is
  2. a.20
  3. b.184
  4. c.200
  5. d.180

In a continuous review system, the average daily demand for a part

Re-Order Point (ROP) Point you wish to reorder to avoid stockouts, Based on demand and Lead- ROP = Average Demand During Leadtime + Safety Stock Time

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