Assignment task: I am not grasping this at all. I have read the textbook and watched all the videos my prof has posted. He has made comments about needing to use the calculation of replenishment level? And no idea what he means.
The normal distribution is one of the most useful distributions that has applications in many business settings. Assume you are a business analyst in Costco, and you want to re-evaluate the replenishment order point to efficiently plan the inventory of fresh produce imported from the USA to satisfy customers' demand while supplying fresh produce. Assuming the daily demand follows a normal distribution, discuss how you would approach this task. What data do you need to collect? And what measures do you need to find? (Hint: think about the probability of stockout during replenishment time.)