gainesvile 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 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?
gainesvile 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 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?
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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gainesvile 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 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?
Transcribed Image Text: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 6 weeks and a standard deviation of 2 weeks.
Demand is also a variable and normally distributed with a mean of 200 cigars
per week and a standard deviation of 25 cigars.
a) For a 90% of service level, what is the ROP?
b) What is the ROP for a 95% service level?
Z
0.38
0.50
0.67
0.84
1.04
1.28
1.41
1.56
1.65
1.75
1.88
2.06
2.33
Pr(Z)
65
69
75
80
85
90
92
94
95
96
97
98
99
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