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
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