What is the risk of a stock out

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A manager is reordering lubricant when the amount on-hand reaches 422 pounds. Average daily usage is 45 pounds, which is normally distributed and has standard deviation of three pounds per day. Lead time is nine days. What is the risk of a stock out?

Please include explanation and calculation.

Reference no: EM13843852

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What is the risk of a stock out : A manager is reordering lubricant when the amount on-hand reaches 422 pounds. Average daily usage is 45 pounds, which is normally distributed and has standard deviation of three pounds per day. Lead time is nine days. What is the risk of a stock out?

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