What reorder level should the company use for an item that


A company advertises a 95% cycle-service level for all stock items. Stock is replenished from a single supplier who guarantees a lead time of four weeks. What reorder level should the company use for an item that has a Normally distributed demand with mean of 1,000 units a week and standard deviation of 100 units? What is the reorder level for a 98% cycleservice level?

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Finance Basics: What reorder level should the company use for an item that
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