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Posted: June 15th, 2022
During the winter season, the weekly demand for road salt in a small group is Usually distributed with a imply of 800 kilos and a normal deviation of 200 kilos. It takes one week lead time to get extra salt delivered. To realize a 99% service degree, what ought to be the reorder level? What are the service ranges (chance of not having a inventory out) if the salt is reordered when the stock degree drops to (a) 1200 kilos (b) 1000 kilos (c) 900 kilos (d) 850 kilos (e) 800 kilos.
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