What reorder point would we use if our acceptable risk

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Reference no: EM132076196

Demand for an item averages 130 units per day with a standard deviation of 4. Lead time for this item averages 6 days with a standard deviation of 0.2 days. What reorder point would we use if our acceptable risk of a stockout is 5%?

Note 1: Round intermediate and final calculations to two decimal places.

Note 2: For 10% stockout risk use Z = 1.28. For 5% stockout risk use Z = 1.645. For 2.5% stockout risk use Z = 1.96.

Reference no: EM132076196

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