Question: The demand for an electronic component is normally distributed with an average daily demand of 80 units (20,000 per year based on 250 work days

The demand for an electronic component is normally distributed with an average daily demand of 80 units (20,000 per year based on 250 work days per year) and a standard deviation of 9 units /day. The lead time for the component is 4 days. If a service level of 95% is desired, then compute the companys EOQ and reorder point for this component.

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