If mean daily demand is 20 units,lead time is 7 days,the standard deviation of demand during lead time is 12.0 units,and management has a preferred service level of 99.9% (z = 3),the reorder (R)level for the item would be

Name: If mean daily demand is 20 units,lead time is 7 days,the standard deviation of demand during lead time is 12.0 units,and management has a preferred service level of 99.9% (z = 3),the reorder (R)level for the item would be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

m = 20(7) = 140; zσ= 3(12); R = 140 + 36 = 176.

If Mean Daily Demand Is 20 Units,lead Time Is 7