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Reorder Point to Achieve Maximum Success Level

Question

A computer products store stocks color graphics monitors, and the daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitor. The lead time to receive an order from the manufacturer is 15 days. Determine the reorder point that will achieve a :

 

a. 98% service level

b. 95% service level

c. 90% service level

Summary

This question belongs to operations management and discusses about a computer products store which stocks color graphics monitors.

Word count: NA

 

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Comments

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    Giuseppe

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