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 8 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 23 cigars.   95% service​ level, what is the​ ROP?

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 8 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 23 cigars.
 
95% service​ level, what is the​ ROP?
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