Question: The daily demand for a component at a hardware store is normally distributed, with an average of 100 and a standard deviation of 10 units.
The daily demand for a component at a hardware store is normally distributed, with an average of 100 and a standard deviation of 10 units. The store manager is willing to accept a risk of stockout 3% of the time during the lead time, which is constant at 6 days.
Answer the following questions. Write your final answer only (without intermediate steps) for the fill-in-the-blank questions.
Question 10 (3 points)
The service level that the store manager wants to maintain =________. Round the final answer to two decimal places, e.g., 0.12, when necessary.
Question 11 (3 points)
The appropriate value of Z (i.e., the number of standard normal deviations) =________. Round the final answer to two decimal places, e.g., 0.12, when necessary.
Question 12 (3 points)
Safety stock =__________units. Round the final answer (if it is not an integer) to the nearest integer.
Question 13 (3 points)
Reorder point =________units. Round the final answer (if it is not an integer) to the nearest integer.
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