Mean and standard deviation of usage during lead time

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Reference no: EM132245396

The purchasing agent has ascertained that the employees use about 50 pencils per day, with very little variation. Pencils are ordered from a supplier whose shipments are irregular. They are normally distributed with a mean of 10 working days and a variance of 4. He has established a 95 percent service level for pencils. a. Which inventory model is appropriate here and why? b. What are the mean and standard deviation of usage during lead time? c. What is the reorder point? d. What is the safety stock?

Reference no: EM132245396

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