The KAB Corporation's daily demand for item XYZ is normally distributed with a mean of 50 and
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Question:
a) Compute the optimal order quantity.
b) What is the reorder point if a 90% against stockouts per cycle is desired?
c) If the reorder point is set at 530, what is the chance of not having stockouts in an order cycle
d) Suppose the management uses an order quantity of 1,000 units. What is the reorder point if an average of one stockout every 300 days is desired?
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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