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 pounds and a standard deviation of four pounds. When should the raw material be reordered if the acceptable risk of a stockout is 3 percent?

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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 pounds and a standard deviation of four pounds. When should the raw material be reordered if the acceptable risk of a stockout is 3 percent?

A Shop Owner Uses a Reorder Point Approach to Restocking