Question: Need quick, neat, explanatory answer with calculations in excel. Question No 2 - Gas Station A gas station near the M1 Motorway is revaluating its


Need quick, neat, explanatory answer with calculations in excel.
Question No 2 - Gas Station A gas station near the M1 Motorway is revaluating its diesel fuel reorder point, i.e. the diesel fuel level in its main tank triggering a replenishment order. The daily demand faced by the station for diesel is normally distributed with an average of 8000 liters and a standard deviation of 2500 liters. After the manager places his order , he knows that he will receive it with an exact lead time of 3 days. (Assume that orders are made immediately after the reorder point is reached and that the demand on each day is independent from the other) Q1- What should the reorder point be set to in order to ensure that the stations chance of a stock out during the replenishment cycle is limited to a probability of 2%? Q2- The manager of the gas station is worried she may have underestimated the variability of demand. Assuming she implements the re-order point from the previous part, what will be the stockout probability if the standard deviation of demand is , in fact 3000 litresStep by Step Solution
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