3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard deviation of 30. The tablet supplier takes an average of 15 days to replenish inventory at Amazon. The standard deviation of the supplier lead time is 5 days. Amazon follows a "periodic review policy" with a review period of 30 days. Amazon is targeting a CSL of 98% for its tablet inventory. (a) What is the mean demand during lead time and review period? What is the standard deviation of demand during lead time and review period? (c) What is the safety (b) stock (in units) during lead time and review period?
3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard deviation of 30. The tablet supplier takes an average of 15 days to replenish inventory at Amazon. The standard deviation of the supplier lead time is 5 days. Amazon follows a "periodic review policy" with a review period of 30 days. Amazon is targeting a CSL of 98% for its tablet inventory. (a) What is the mean demand during lead time and review period? What is the standard deviation of demand during lead time and review period? (c) What is the safety (b) stock (in units) during lead time and review period?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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![3. Daily demand for tablets of amazon is normally
distributed, with a mean of 100 and standard
deviation of 30. The tablet supplier takes an average
of 15 days to replenish inventory at Amazon. The
standard deviation of the supplier lead time is 5 days.
Amazon follows a "periodic review policy" with a
review period of 30 days. Amazon is targeting a CSL
of 98% for its tablet inventory. (a) What is the mean
demand during lead time and review period?
What is the standard deviation of demand during
lead time and review period? (c) What is the safety
(b)
stock (in units) during lead time and review period?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc241ae8-7e73-4f30-968a-3a9528646497%2F4da9727b-d891-4984-9bf2-3c1fca06b53a%2Fmaak2o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Daily demand for tablets of amazon is normally
distributed, with a mean of 100 and standard
deviation of 30. The tablet supplier takes an average
of 15 days to replenish inventory at Amazon. The
standard deviation of the supplier lead time is 5 days.
Amazon follows a "periodic review policy" with a
review period of 30 days. Amazon is targeting a CSL
of 98% for its tablet inventory. (a) What is the mean
demand during lead time and review period?
What is the standard deviation of demand during
lead time and review period? (c) What is the safety
(b)
stock (in units) during lead time and review period?
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