Question: The daily demand experienced by small home computer assembler is normally distributed with a mean of 20 units and a standard deviation of 6 units.

The daily demand experienced by small home computer assembler is normally distributed with a mean of 20 units and a standard deviation of 6 units. The assembler sources the RAM for the computer from a supplier in the local market. The lead time for supply of the RAM chips is also normally distributed with a mean of 3 days and a standard deviation of 1 day. If the assembler desires to ensure a 90% probability of not stocking out during lead time, compute the following: Reorder level and inventory.

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!

1 . The daily demand experienced by small home computer assembler is normally distributed with a mean of 2 0 units and a standard deviation of 6 units. The assembler sources the RAM for the computer...

just need question (c) onwards ! Thanks SECTION A 1 Zamsung Lid manicure Fishdrives for Notebook computers in a plant in Tuns. One of the Flash drive DXRE 1TB is shipped to Zenovo tablet computer...

Zamsung Ltd manufactures Flash drives for Notebook computers in a plant in Tuas. One of the Flash drive models, XRIE 1TB is shipped to Zenovo tablet computer manufacturers (the only customer for this...

One of the Flash drive models, XRiE 1 TB is shipped to Zenovo tablet computer manufacturers ( the only customer for this model ) directly from Finished Goods inventory. Figure 1 shows the...

1. Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks, with each trip costing...

Table 1 Inventory records show the following: Item Category # unique variations Average Cost Avg Monthly Vol Frames (C) 3 $ 45.00 100 Derialer 5 $ 20.00 1000 Spokes 3 $ 0.14 22000 Tire Tubes 3 $ 2.00...

a. Daily demand of an item is normally distributed with a daily mean of 60 units and standard deviation of 8 units. Supply is virtually certain for a lead time of 3 days. The cost of placing an order...

IIMT3636 Decision and Risk Analysis 1, 2022/23 Semester I Due date: Dec 04 (Sun), 2022, 11:59pm Upload your report and Excel file to Moodle Delnovo produces high-quality made-to-order ultrabook...

Income statements of M Cop. and K Co. for the year ended December 31, Year 6, are presented below: Additional Information ¢ M Co. uses the equity method to account for its investment in K Co....

The number of employed people is 135.2 million. The number of unemployed people is 5.7 million people. The number of people outside the labor force is 68.8 million. What is the unemployment rate?...

What is DoS?

Sun Company Sun Company purchased 1,000 shares of Moon Company from stock market on January 1, 2021. Moon's shares were trading at Tk. 85 per share on that date. Moon had total 5,000 shares...