Suppose that we would like to determine Reorder Point for the product. From the historical data the manager determined demand during lead-time for that product fits Normal distribution with a mean of...


Suppose that we would like to determine Reorder Point for the product. From the historical data<br>the manager determined demand during lead-time for that product fits Normal distribution with a<br>mean of 200 and standard deviation of 10 products. The maximum stock out risk is 10%. Answer<br>the following questions according to the (Q, R) system.<br>a) Find the safety stock if the lead time is 2 weeks.<br>b) Find the reorder point.<br>c) Find the reorder point if the stock out risk decreases to 1%. Comment on the result.<br>

Extracted text: Suppose that we would like to determine Reorder Point for the product. From the historical data the manager determined demand during lead-time for that product fits Normal distribution with a mean of 200 and standard deviation of 10 products. The maximum stock out risk is 10%. Answer the following questions according to the (Q, R) system. a) Find the safety stock if the lead time is 2 weeks. b) Find the reorder point. c) Find the reorder point if the stock out risk decreases to 1%. Comment on the result.

Jun 06, 2022
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