A car manufacturer uses a continuous review system to manage inventory of one of its engine's component. The demand for the component is normally distributed with an average of 53 units per week. Current lead time is 3 weeks. The standard deviation of demand is 11 units. a. What is the probability of demand exceeding the reorder point when the reorder quantity is set at 190 units? The probability is%. (Enter your response rounded to two decimal places.) b. What is the probability of demand exceeding the 190 units, if the supplier delays the lead time to 4 weeks? The probability is%. (Enter your response rounded to two decimal places.) Kare More ope

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
Question
K
A car manufacturer uses a continuous review system to manage inventory of
one of its engine's component. The demand for the component is normally
distributed with an average of 53 units per week. Current lead time is 3
weeks. The standard deviation of demand is 11 units.
a. What is the probability of demand exceeding the reorder point when the
reorder quantity is set at 190 units?
The probability is %. (Enter your response rounded to two decimal
places.)
b. What is the probability of demand exceeding the 190 units, if the supplier
delays the lead time to 4 weeks?
The probability is %. (Enter your response rounded to two decimal
places.)
Transcribed Image Text:K A car manufacturer uses a continuous review system to manage inventory of one of its engine's component. The demand for the component is normally distributed with an average of 53 units per week. Current lead time is 3 weeks. The standard deviation of demand is 11 units. a. What is the probability of demand exceeding the reorder point when the reorder quantity is set at 190 units? The probability is %. (Enter your response rounded to two decimal places.) b. What is the probability of demand exceeding the 190 units, if the supplier delays the lead time to 4 weeks? The probability is %. (Enter your response rounded to two decimal places.)
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON