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

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 96 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 3 units a day. Lead time is variable, averaging 5 days with a standard deviation of one day. Assume normality and that seasonality is not a factor. What is the reorder point to achieve the desired service level? (round to 2 decimal places)

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