Reorder point = dL + zσd√L
Where z = number of standard deviations based on service level 90% = 1.28 from z table
σd = standard deviation of demand = 20
L = Lead Time = 2 days
d = average demand = 100
Reorder Point = 100*2 + 1.28*20*√2 = 236.20 = 237
at service level of 95%, z = 1.65
Reorder Point = 100*2 + 1.65*20*√2 = 246.67 = 247
More Info Resulting service level (%) 90 95 z value 1.28 1.65 2.33 3.08 99.9 PrintDone...
Problem 2 - Bookmatch Question Help * Mountain Mouse makes freeze-dried meals for hikers. One of Mountain Mouse's biggest customers is a sporting goods superstore. Every 5 days, Mountain Mouse checks the inventory level at the superstore and places an order to restock the meals. These meals are delivered by UPS in 2 days. Average demand during the reorder period and order lead time is 100 meals, and the standard deviation of demand during this same time period is about...
Mountain Mouse makes freeze-dried meals for hikers. One of Mountain Mouse's biggest customers is a sporting goods superstore. Every 5 days, Mountain Mouse checks the inventory level at the superstore and places an order to restock the meals. These meals are delivered by UPS in 2 days. Average demand during the reorder period and order lead time is 100 meals, and the standard deviation of demand during this same time period is about 20 meals. Click the icon to view...
Z-Table Z Pr(Z) 0.38 65 0.50 69 0.67 75 0.84 80 1.04 85 1.28 90 92 1.41 1.56 94 1.65 95 1.75 96 98 2.06 2.33 99 Chicago's Hard Rock Hotel distributes a mean of 800 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with deviation of 105 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 4-day lead time. The hotel expects...