The daily demand for TVs at TVWorld is normally distributed with mean 400 and standard deviation100. Each time an order for TVs is placed. It takes exactly 4 days to arrive, i.e. TV orders have a 4-day lead time. TVWorld does not want to run out of TVs during more than 1% of all lead times. How low should TVWorld let its TV inventory drop before it places an order for more TVs?

Answer rating: 100% (QA)

Solution The daily demand for TVs at Lowland Appliance is normally distributed with mean 400 and standard deviation 100 Thus if a random variable Xi d... View the full answer