Question: Please compute the ROP for the two cases. a. A printing service company uses 10,000 packs of A4 paper annually at 250 working days with

Please compute the ROP for the two cases.

a. A printing service company uses 10,000 packs of A4 paper annually at 250 working days

with a daily standard deviation of 20 packs. As for the company policy, the risk of stockout

must be no more than 4%. If the lead time is 4 days, please determine the ROP.

b. The Corner Drug Store stocks a popular brand of sunscreen. The average demand for the

sunscreen is 6 bottles per day, with a standard deviation of 1.2 bottles. A vendor for the

sunscreen producer checks the drugstore stock every 60 days, and during a particular visit

the drugstore had 8 bottles in stock. The lead time to receive an order is 5 days. If The

manager of the store accepts the risk of stockout less than 5%, please determine the ROP.

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