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Daily Demand for a product is normally distributed with a mean u= 12 units and standard deviation of 4 units. Lead time is 9. The order quantity for this item is set at a 12 days supply.
a) If a minimum probability of satisfying demand per cycle of .80 is desired, what is the reorder point?
b) If a fill rate of 98% is desired, what is the reorder point?
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