a) For a 90% service level, what is the ROP? The reorder point is cigars (round your response to the nearest whole number).

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 4 weeks and a standard deviation of
2 weeks. Demand is also a variable and normally distributed with a mean of 150 cigars per week and a standard deviation of 25 cigars. Refer to the standard normal table for z-values.
This exercise contains only parts a and b.
a) For a 90% service level, what is the ROP?
The reorder point is
cigars (round your response to the nearest whole number).
Transcribed Image Text:Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 4 weeks and a standard deviation of 2 weeks. Demand is also a variable and normally distributed with a mean of 150 cigars per week and a standard deviation of 25 cigars. Refer to the standard normal table for z-values. This exercise contains only parts a and b. a) For a 90% service level, what is the ROP? The reorder point is cigars (round your response to the nearest whole number).
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