Daily demand for an item is normally distributed with a


Daily demand for an item is normally distributed with a mean of 200 and a standard deviation of 25. The lead time is 5 days.

a) If we desire a cycle service level of 98%, what is the reorder point?

b) If we set the reorder point to 1,100, what is the resulting cycle service level?

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Operation Management: Daily demand for an item is normally distributed with a
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