Question: The demand for an item is normally distributed with an average annual demand of 8000 units, and with a standard deviation of demand during the
The demand for an item is normally distributed with an average annual demand of 8000 units, and with a standard deviation of demand during the lead time of 6 units. The lead time for this item is a constant 3 days. Calculate the reorder point using a 95 percent in-stock probability (Z = 1.65) and assuming 365 days per year. Round off to the nearest whole unit.
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