Demand for your product averages 20 units per day, with a standard deviation of 4. Your lead time is 5 days. (See attached) What should your reorder point be, if you want to have a 95% chance of not...

Demand for your product averages 20 units per day, with a standard deviation of 4. Your lead time is 5 days. (See attached)

1. What should your reorder point be, if you want to have a 95% chance of not running out of products during the lead time?


2. With this reorder level, how much safety stock do you have?

Extracted text: Standard Normal Table 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 Z value Pr(<=z) z=""><=z) z=""><=z) 0.0="" 0.500="" 1.0="" 0.841="" 2.0="" 0.977="" 0.1="" 0.540="" 1.1="" 0.864="" 2.1="" 0.982="" 0.2="" 0.579="" 1.2="" 0.885="" 2.2="" 0.986="" 0.3="" 0.618="" 1.3="" 0.903="" 2.3="" 0.989="" 0.4="" 0.655="" 1.4="" 0.919="" 2.4="" 0.992="" 0.5="" 0.691="" 1.5="" 0.933="" 2.5="" 0.994="" 0.6="" 0.726="" 1.6="" 0.945="" 2.6="" 0.995="" 0.7="" 0.758="" 1.7="" 0.955="" 2.7="" 0.997="" 0.8="" 0.788="" 1.8="" 0.964="" 2.8="" 0.997="" 0.9="" 0.816="" 1.9="" 0.971="" 2.9="" 0.998="" probability="" e-="" -2.7="" -2.4="" -2.1="" 8't="" -1.5="" -1.2="" 6'0-="" -0.6="" 0.3="" 9'0="" 6'0="" 1.2="" 1.5="">