Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 4 weeks and a standard deviation of 2 weeks. Demand is also a variable and normally distributed with a mean of 225 cigars per week and a standard deviation of 25 cigars. Refer to the standard normal table for z-values. This exercise contains only parts a and b. a) For a 95% service level, what is the ROP? The reorder point is cigars (round your response to the nearest whole number).
Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 4 weeks and a standard deviation of 2 weeks. Demand is also a variable and normally distributed with a mean of 225 cigars per week and a standard deviation of 25 cigars. Refer to the standard normal table for z-values. This exercise contains only parts a and b. a) For a 95% service level, what is the ROP? The reorder point is cigars (round your response to the nearest whole number).
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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