Gainesville cigar stocks cuban cigars that have variable, Ask an Expert

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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% service level, what is the ROP?

b) What is the ROP for a 95% service level?

c) Explain what these two service levels mean. Which is preferable?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M92011283

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