Question: Weekly demand for a certain product is normally distributed with mean 2 0 0 and standard deviation 1 0 . The source of supply is
Weekly demand for a certain product is normally distributed with mean and standard deviation The source of supply is reliable and maintains a constant leadtime of week. Ordering cost is $ per order, and annual inventoryholding cost is $ per unit. Management wants to satisfy a probability of not running out of stock in any one ordering cycle. Assume weeks a year.
a What should be the reorder point? Note: The value corresponding to service level is
b What should the order quantity?
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