Question: In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64,
In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. What should the reorder point be for a 95% service level?
A.
201 units
B.
1,617 units
C.
417 units
D.
1,531 units
E.
330 units
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