Question: Weekly demand for 12 frames at the Frame Shop is normally distributed with a mean of 250 and a standard deviation of 150. The store
Weekly demand for 12 frames at the Frame Shop is normally distributed with a mean of 250 and a standard deviation of 150. The store manager continuously monitors inventory and currently orders 1,000 frames each time the inventory drops to 600 frames. The manufacturer currently takes two weeks to fill an order. How much safety inventory does the store carry?
a. 250
b. 100
c. 1000
d. 10
If the reorder is placed when the inventory drops to 500 frames, what is the chance of a stock out?
a. 10%
b. 30%
c: 50%
d. 70%
e. 100%
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