The inventory manager at a consumer goods warehouse has long implemented the EOQ-type inventory management model for its flagship product. Derived from this model, the product is handled with a batch of 1,500 units, a reorder point of 300 units (inventory level available) and a delivery time of 3 weeks. After observing the product demand ratio for several cycles and detecting uncertain behavior in it, especially during delivery time, the administrator concluded that it is necessary to establish a safety inventory. Based on the observations, it could be determined that the demand follows a uniform distribution between 150 and 450 units during the delivery time (demand accumulated in 3 weeks).

Based on the observations and data collected by the administrator, determine a depletion probability table for the series of safety inventories proposed for the star product:

reorder point (deterministic)	inventory	reorder point (probabilistic)	probability exhaustion
300	60		%
300	72		%
300	84		%
300	96		%
300	108		%
300	120		%
300	132		%
300	144		%

Answer rating: 100% (QA)

ANSWER Probability tables are a generic tool that allows for representing any random variable whose ... View the full answer