Question: Statistical Reorder Point Using Probabilistic Demand and Constant Delivery Lead Time Average demand ( ) 5 0 0 Demand Standard deviation ( sigma dLT

Statistical Reorder Point Using Probabilistic Demand and Constant Delivery Lead Time
Average demand ()500
Demand Standard deviation (\sigma dLT)50
Service level 85%
Service level alternate 87%
Formulas
Z-value for service level 1.04=NORMSINV(B5)
Z-value for service level alternate 1.13=NORMSINV(B6)
Required safety stock 52 units =B4*B8
ROP 25052 units =(B3*B4)+B11
Required safety stock alternate 56 units =B4*B9
Safety stock difference units #N/A

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