Question: The daily demand for a component at a computer store is normally distributed with an average of 100 and a standard deviation of 10 units.

The daily demand for a component at a computer store is normally distributed with an average of 100 and a standard deviation of 10 units. The manager is willing to accept a risk of stockout 3% the time during the lead time, which is constant at 6 days.

what is the service level that the store manager wants to maintain?
What is the appropriate value of z ?
What its the safety stock in units?
What is the reorder points in units ?

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