During the winter season the weekly demand for road salt in, Ask an Expert

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During the winter season, the weekly demand for road salt in a small community is Normally distributed with a mean of 800 pounds and a standard deviation of 200 pounds. It takes one week lead time to get more salt delivered. To achieve a 99% service level, what should be the reorder point? What are the service levels (probability of not having a stock out) if the salt is reordered when the inventory level drops to (a) 1200 pounds (b) 1000 pounds (c) 900 pounds (d) 850 pounds (e) 800 pounds. Reorder point to achieve 99% service level = ______________ Reorder point Service level 1200 1000 900 850 800

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91887946

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