17.
A.
Demand per day = 18
Lead time = 5 days
so, lead time demand =Demand per day*Lead time= 18*5 = 90
S.D. of lead time demand = (Lead time)^.5 * SD = 5^.5 * 4
S.D. of lead time demand = 8.94
B
Safety stock = Z*SD of lead time
10 = Z* 8.94
Z = 10/8.94 = 1.12
At this value of Z, CSL = 86.86% ( from normal distribution Z table)
C.
At 98.5%, Z score = 2.17
Now,
Reorder point = lead time demand + Z*SD of lead time = 90+ 2.17*8.94 = 109.4 or 109
D.
Reorder point = 90 + Z*((4^2 * 5) + (3^2 * 18^2))^.5
Reorder point = 90 + 2.17*((4^2 * 5) + (3^2 * 18^2))^.5
Reorder point = 208.8 or 209 unit
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