A shop owner uses a reorder point approach to restocking a certain raw material.Lead time is six days.Usage of the material during lead time is normally distributed with a mean of 42 kilograms and a standard deviation of 4 kilograms.When should the raw material be reordered if the acceptable risk of a stock-out is 3%?

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The Answer of A shop owner uses a reorder point approach to restocking a certain raw material.Lead time is six days.Usage of the material during lead time is normally distributed with a mean of 42 kilograms and a standard deviation of 4 kilograms.When should the raw material be reordered if the acceptable risk of a stock-out is 3%?

A Shop Owner Uses a Reorder Point Approach to Restocking