Question: Weekly demand for detergent at a Walmart store is normally distributed with a mean of 800 and a standard deviation of 215. The store manager

  1. Weekly demand for detergent at a Walmart store is normally distributed with a mean of 800 and a standard deviation of 215. The store manager continuously monitors detergent inventory and places a replenishment order for 5,000 units when there are 3,000 units in inventory. The supplier of the detergent takes 3 weeks to supply a Walmart order.
  1. What is Walmarts safety stock for detergent with this policy?
  2. What cycle service level does Walmart achieve with this policy?
  3. If the Reorder point is set at 2,800, then what would be the probability of a stock out assuming everything else is as before?

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