2) Daily demand for a product is normally distributed with a mean of 100 and a standard deviation of 12.The lead time is normally distributed with a mean of 5 days and a standard deviation of 1.5 days.a) What is the ROP to satisfy a %90 probability of not stocking out?b) What is the safety stock?c) What is the probability of stocking out if the manager has decided not to keep any safety stock?What is the Z value, and what is the probability?

Daily demand (d) = 100 Standard deviation demand (Sd) = 12 Lead time (L) = 5 Standard deviation (Sl)…

Answered: a) What is the ROP to satisfy a %90…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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a) What is the ROP to satisfy a %90 probability of not stocking out? b) What is the safety stock? c) What is the probability of stocking out if the manager has decided not to keep any safety s What is the Z value, and what is the probability?