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Bell computers produces and stocks computer printers in its finished goods warehouse. These DDLT historical data are believed to be representative of future demand for one printer model.
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Actual DDLT Frequency
0-29 0
30-39 .10
40-49 .10
50-59 .15
60-69 .20
70-79 .25
80-89 .10
90-99 .05
100-109 .05
110-120 0
I was able to figure out the first question but not the second and third.
- If at least a 90 percent service level is to be provided for these printers a. what would be the order point? b. what would be the safety stock?
- If the DDLT for the printer is actually normally distributed with a mean of 65 and a standard deviation of 10, and a 90 % service level: a. what is the order point? b. what is the safety stock?
- If the lead time for these printers is so stable that the lead time can be a constant 6.5 days, the demand per day is normally distributed with a mean of 10 and a dtandard deviation of 2, and a 90% service level a. what is the order point? b. what is the safety stock?
So, order point = EDDLT + SS but i can’t figure out how exactly to do this.


