The Paramount Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper

Question:

The Paramount Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is normally distributed, with a mean of 9000 pounds and a standard deviation of 1900 pounds. Lead time is eight days. Determine the reorder point if the paper company wants to limit the probability of a stockout and work stoppage to 2%.