Question: USING THIS INFORMATION: a) For a 94% service level what is the ROP? b) What is the ROP for a 91% service level? c) Question

USING THIS INFORMATION:

a) For a 94% service level what is the ROP?

b) What is the ROP for a 91% service level?

c) Question C posted in the picture

USING THIS INFORMATION: a) For a 94% service

12.34 Halifax Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of six weeks and a standard deviation of two weeks. Demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a. For a 90% service level, what is the ROP? b. What is the ROP for a 95% service level? c. Explain what these two service levels mean. Which is preferable?PX

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