Question: Please answer all parts with detailed explanation else downvote. Weekly demand for a certain product is normally distributed with mean 200 and standard deviation 20.

Please answer all parts with detailed explanation else downvote.

Please answer all parts with detailed explanation else downvote. Weekly demand for

Weekly demand for a certain product is normally distributed with mean 200 and standard deviation 20. The source of supply is reliable and maintains a constant leadtime of 4 week. Management wants to satisfy a 95% probability of not running out of stock in any one ordering cycle. What should be the reorder point? Round your answer to the nearest integer value. (Note: The z value corresponding to 95% service level is 1.65.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!