A car manufacturer uses a continuous review system to manage inventory of one of its engine's component. The demand for the component is normally distributed with an average of 53 units per week. Current lead time is 3 weeks. The standard deviation of demand is 11 units. a. What is the probability of demand exceeding the reorder point when the reorder quantity is set at 190 units? Refer to the standard normal table as needed. The probability is %. (Enter your response rounded to two decimal places.) b. What is the probability of demand exceeding the 190 units, if the supplier delays the lead time to 4 weeks? Refer to the standard normal table as needed. The probability is %. (Enter your response rounded to two decimal places.)

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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A car manufacturer uses a continuous review system to manage inventory of
one of its engine's component. The demand for the component is normally
distributed with an average of 53 units per week. Current lead time is 3
weeks. The standard deviation of demand is 11 units.
a. What is the probability of demand exceeding the reorder point when the
reorder quantity is set at 190 units? Refer to the standard normal table as
needed.
The probability is %. (Enter your response rounded to two decimal
places.)
b. What is the probability of demand exceeding the 190 units, if the supplier
delays the lead time to 4 weeks? Refer to the standard normal table as
needed.
The probability is %. (Enter your response rounded to two decimal
places.)
Transcribed Image Text:K A car manufacturer uses a continuous review system to manage inventory of one of its engine's component. The demand for the component is normally distributed with an average of 53 units per week. Current lead time is 3 weeks. The standard deviation of demand is 11 units. a. What is the probability of demand exceeding the reorder point when the reorder quantity is set at 190 units? Refer to the standard normal table as needed. The probability is %. (Enter your response rounded to two decimal places.) b. What is the probability of demand exceeding the 190 units, if the supplier delays the lead time to 4 weeks? Refer to the standard normal table as needed. The probability is %. (Enter your response rounded to two decimal places.)
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