Question: Suppose that lead-time demand is normally distributed with a mean of 250 units and a standard deviation of 50 units. If a firm wants to

Suppose that lead-time demand is normally

Suppose that lead-time demand is normally distributed with a mean of 250 units and a standard deviation of 50 units. If a firm wants to maintain a 95% service level, what should the reorder point be? Select one: a. 532.2 units b. 432.2 units C. 132.2 units O d. 332.2 units

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 General Management Questions!

The cable is subjected to the parabolic loading w = 200(1 - (x/50 2 ) lb/ft, where x is in ft. Determine the equation y = f(x) which defines the cable shape AB, and the maximum tension in the cable....

QUESTION 17 You are considering adding a new food product to your store for resale. You are certain that, in a month, minimum demand for the product will be 6 units, while maximum demand will be 8...

Suppose that lead - time demand is normally distributed with a mean of 2 5 0 units and a standard deviation of 5 0 units. If a firm wants to maintain a 9 5 % service level, what should the safety...

Suppose that lead-time demand is normally distributed with a mean of 250 units and a standard deviation of 50 units. If a firm wants to maintain a 95% service level, what should the reorder point be?

Suppose that lead - time demand is normally distributed with a mean of 2 5 0 units and a standard deviation of 5 0 units. If a firm wants to maintain a 9 5 % service level, what should the reorder...

Foster Drugs, Inc., handles a variety of health and beauty aid products. A particular hair conditioner product costs Foster Drugs $2.95 per unit. The annual holding cost rate is 20%. An...

Standard normal table: Only part c needs an answer Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 12 weeks, and the lead time...

Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 4 weeks, and the lead time for receiving the materials ordered from its...

Standard normal table: Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 12 weeks, and the lead time for receiving the materials...

what is target inventory level? the equation is order quantity= T-IP Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 9 weeks,...

What are some of the voice qualities that can affect message meaning?

Each test program except the first one comes in two versions: Prog.asm is an assembly program; ProgL.asm is the very same program, Less the symbols (each symbol is replaced with an explicit memory...

Pera Inc. is planning to buy a piece of equipment that can be used in a 5 - year project. The equipment costs $ 4 , 0 0 0 , 0 0 0 ; has a tax life of 1 0 years, and is depreciated using the straight...

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...