Question: One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store
One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it The manager wants a probability of at least percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of two units a day. Leac time is variable, averaging four days with a standard deviation of one day.
Use the to get a value that represents the service level. Then use the formula
ROP
When should the manager reorder to achieve the desired probability? Round your intermediate calculations to decimal places. Round your final answer to a whole number.
ROP
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