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?
A)Z Value = 1.88 (from normal table where area below z = 0.97)
B) ROP = Mean ...
The expert examines reorder point for ROP. The z-value is determined.