Question: Use the Formula Sheet Z table to determine Z values. The Richfield Cardboard company produces cardboard out of wood pulp ordered from a lumber products

Use the Formula Sheet Z table to determine Z values. The Richfield Cardboard company produces cardboard out of wood pulp ordered from a lumber products firm. Richfields daily demand for wood pulp is normally distributed with a mean of 8,000 pounds and a standard deviation of 2,000 pounds. Lead time is 7 days.

1. Richfield uses an average of _________ pounds of wood pulp during the lead time.

2. If Richfield uses a 65% service level, how much safety stock will be used?

3. What is the reorder point if Richfield wants to limit the probability of a stockout to 2 percent?

4. What is the service level if Richfield reorders when the wood pulp inventory reaches 61,500 pounds? 5. What is the reorder point if Richfield only wants a 20% service level?

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