Daily demand for a product is 85 units with a standard deviation of 11 units. Th
ID: 2484882 • Letter: D
Question
Daily demand for a product is 85 units with a standard deviation of 11 units. The review period is 9 days, and lead time is 4 days. At the time of review there are 115 units in stock. If 90 percent service probability is desired, how many units should be ordered? (Round your answer to the nearest whole number.)
Daily demand for a product is 85 units with a standard deviation of 11 units. The review period is 9 days, and lead time is 4 days. At the time of review there are 115 units in stock. If 90 percent service probability is desired, how many units should be ordered? (Round your answer to the nearest whole number.)
Explanation / Answer
(average daily demand times number of days of lead time) plus (standard deviation during lead time) times (desired Z score) =
=(85*(9+4)+1.28*11)-115=1004.08
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