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What is the reorder point if the lead time is not consistent

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Buy-More stocks color graphics monitors. The daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitors. The lead time to receive an order from the manufacturer is a constant 15 days. 

a. Determine the reorder point that will achieve a 98% service level. ( z value = 2.05).

b. What is the reorder point if the lead time is not consistent at 15 days, but has a standard deviation of 0.5 days?

Reference no: EM13979041

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