Average daily demand for a product is normally distributed with a mean of 20 units and a standard deviation of 3 units. Lead time is fixed at 25 days. What reorder point provides for a service level of 95 percent?
What will be an ideal response?
ROP = DL + Z × σd × = 20(25 ) + 1.65 × 3 × = 500 + 24.75 = 524.75
Business
You might also like to view...
Which of the following is considered the economic engine of the whole analytics industry?
A) application developers and system integrators B) analytics user organizations C) analytics industry analysts and influencers D) academic providers and certification industries
Business
Preventing other parties from denying actions they have taken is referred to as:
A) authentication. B) nonrepudiation. C) integrity stabilization. D) None of the above
Business