$[Qx]$:$6-47$ H & K Electronic Warehouse sells a $12-$pack of AAA batteries, and this is a very popular

item. Demand for this is normally distributed, with an average of $50$ packs per day and a standard

deviation of $16.$ The average delivery time is five days, with a standard deviation of two days. Delivery

time has been found to be normally distributed. A $96\%$ service level is desired.

a$.$ What is the standard deviation of demand during the lead time? larr Both demand t Lead

$$ Demand

b$.$ Howinglead time

$\sqrt[\phantom{2}]{5({16}^2)+{50}^2(2^2)}=106\mathrm{.}21$

b$.$ How much safety stock should be carried, and what should be the reorder point?

F Demand Lead time $=1\mathrm{.}75(106\mathrm{.}21)=185\mathrm{.}87$

Averase Demand $=50$