An item is managed under a continuous review inventory policy. Daily demand for the item normally distributed with a mean 39 and standard deviation 8.9. The Lead time averages 6 days with a standard deviation of 2.6. The target service level for the item is 95%. What is the standard deviation of the demand during the reorder period? Enter your answer rounded to 2 decimal places.

An item is managed under a continuous review inventory policy. Daily demand for the item normally distributed with a mean 39 and standard deviation 8.9. The Lead time averages 6 days with a standard deviation of 2.6. The target service level for the item is 95%. What is the standard deviation of the demand during the reorder period? Enter your answer rounded to 2 decimal places.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 17.1IP

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