Question: The average daily demand for a dishwasher is normally distributed with a mean of 6 units and a standard deviation of 0.75 unit. Lead time
The average daily demand for a dishwasher is normally distributed with a mean of 6 units and a standard deviation of 0.75 unit. Lead time is fixed at five days.
a.What is the reorder point If there no safety stock?
b.What is the reorder point if the service level is 90 percent? (Use 2 = 1.28 for 90% service level?
c.What is the reorder point if the service level is raised from 90% to 95% How much more safety stock is required? (Use 2 = 1.64 for 95% service level)
d.What is reorder point under certainty?
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