Albrech’s is an upscale garden center that sells a clay orchid pot. Inventory is reviewedweekly and there is a one-week lead time to receive orders. Average weekly demand is20 units with a standard deviation of 10. On average, they have 36.5 pots on hand in thestore. What in-stock probability do they offer to their customers?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Albrech’s is an upscale garden center that sells a clay orchid pot. Inventory is reviewed
weekly and there is a one-week lead time to receive orders. Average weekly demand is
20 units with a standard deviation of 10. On average, they have 36.5 pots on hand in the
store. What in-stock
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