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Posted: June 15th, 2022
During the winter season, the weekly demand for road salt in a small
During the winter season, the weekly demand for road salt in a small community is Normally distributed with a mean of 800 pounds and a standard deviation of 200 pounds. It takes one week lead time to get more salt delivered. To achieve a 99% service level, what should be the reorder point? What are the service levels (probability of not having a stock out) if the salt is reordered when the inventory level drops to (a) 1200 pounds (b) 1000 pounds (c) 900 pounds (d) 850 pounds (e) 800 pounds.
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