Discuss the below:
Q: The president of the wholesale distributor is concerned about the possibility of stockouts causing a loss of customer confidence and loyalty and is interested in maintaining safety stock in inventory to prevent potential stockouts.
Assuming demand is normally distributed with a mean of 15 units and a standard deviation of 3.2 units, and a constant lead time of 4 days, what is the reorder point necessary to provide a 97% level of service?
Assuming demand is constant at 15 units per day, and lead time is normally distributed with a mean of 4 days and a standard deviation of 1.4 days, what is the reorder point necessary to provide a 97% level of service?
Assuming that demand is normally distributed with a mean of 15 units and a standard deviation of 3.2 units, and lead time is normally with a mean of 4 days and a standard deviation of 1.4 days, what is the reorder point necessary to provide a 97% level of service?