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    Reorder Point - ROP

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    Daily demand is almost constant at 12,500 units. The lead time is normally distributed with a mean of 4 days and a standard deviation of 1 day. A 97% service level is expected.

    A. What is the Z value?
    B. What is the ROP?
    C. Only the lead time variable in this problem?

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    Solution Preview

    A)Z Value = 1.88 (from normal table where area below z = 0.97)

    B) ROP = Mean ...

    Solution Summary

    The expert examines reorder point for ROP. The z-value is determined.