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IM Systems assembles microcomputers from generic components. It purchases flat screen monitors from a manufacturer in Taiwan; thus, there is a long lead time of 25 days. Daily demand is normally distributed with a mean of 3.5 monitors and a standard deviation of 1.2 monitors. The company maintains a 90% customer service level. How much safety stock of monitors should IM Systems hold?
8 monitors
10 monitors
12 monitors
48 monitors
When should IM Systems reorder the monitors?
When the stock on hand reaches 100 monitors
When the stock on hand reaches 95 monitors
Every 100 days
Every 25 days
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