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Reorder Point Calculation

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The president of the wholesale distributor is concerned about the possibility of stockouts causing a loss of customer confidence and loyalty and is interested in maintaining safety stock in inventory to prevent potential stockouts.

Assuming demand is normally distributed with a mean of 15 units and a standard deviation of 3.2 units, and a constant lead time of 4 days, what is the reorder point necessary to provide a 97% level of service?

Assuming demand is constant at 15 units per day, and lead time is normally distributed with a mean of 4 days and a standard deviation of 1.4 days, what is the reorder point necessary to provide a 97% level of service?

Assuming that demand is normally distributed with a mean of 15 units and a standard deviation of 3.2 units, and lead time is normally with a mean of 4 days and a standard deviation of 1.4 days, what is the reorder point necessary to provide a 97% level of service?

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