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Daily demand is almost constant at 12,500 units. The lead time is normally distributed with a mean of 4 days and a standard deviation of 1 day. A 97% service level is expected.
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A. What is the Z value?
B. What is the ROP?
C. Only the lead time variable in this problem?
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https://brainmass.com/business/business-management/reorder-point-rop-210800
Solution Preview
A)Z Value = 1.88 (from normal table where area below z = 0.97)
B) ROP = Mean …
