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In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. What should the reorder point be for a 95% service level?

Respuesta :

Answer:

~ 1561.235

Explanation:

Given :

[tex]Z=1.645[/tex]

[tex]d = 200\ \\variance =64[/tex]

Standard deviation can be determined by the [tex]\sqrt{variance }[/tex]

Standard deviation=SD

=[tex]\sqrt{64}\ =\ 8[/tex]

[tex]LT = 6\[/tex]

σ = 8

Now using the formula

[tex]R\ =\ d \ *\ LT\ +Z\ \sqrt{LT^{2}\ +SD^{2} \ +\ d\ \sigma\ ^{2} } \\\\Putting\ the\ respective\ value\ we\ get \\R=200 * 6 + 1.645\sqrt{6 * 8^2 + 200 *1^2}[/tex]

R=1561.235

~ 1561.235

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