Demand is also a variable and normally distributed

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Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 7 weeks and a standard deviation of 1 week. Demand is also a variable and normally distributed with a mean of 250 cigars per week and a standard deviation of 25 cigars. refer to the standard normal table for z-values

This exercise contains only parts a and b.

a) For a 97% service level, what is the ROP?

The reorder point is __ cigars (round your response to the nearest whole number)

Reference no: EM13779366

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