Question: Quantitative Question ( Write legibly; Credit will be given only if appropriate work is done. ) A shop owner uses a reorder point approach to

Quantitative Question (Write legibly; Credit will be given only if appropriate work is done.)

A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is 8 days. Usage of the material during lead time is normally distributed with a mean of 70 pounds and a standard deviation of 8 pounds. When should the raw material be reordered if the acceptable risk of a stockout is 10 percent?

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