An industrial company requires argon gas cylinders for its work. Weekly demand is normally distributed with a
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An industrial company requires argon gas cylinders for its work. Weekly demand is normally distributed with a mean of 35 and a standard deviation of 15. Demands are independent across weeks. Orders are placed weekly and the lead time to receive an order is 1 week. They want to hold enough cylinders to ensure a 97% fill-rate. If they use an order up-to model, what base stock level should they implement?
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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