What is the probability of a stockout

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Reference no: EM131863132

Question: Demand follows a Normal distribution with daily mean = 15 units and daily standard deviation = 3 units. However, the company places a re-order thru Amazon Prime (they're guaranteed to receive it in 2 days). If the company wants to maintain a 99% service level (Z = 2.33), what should the ROP be?

a. What is the SS level?

b. What is the probability of a stockout?

Reference no: EM131863132

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