Daily demand for a certain product is normally distributed with a mean of 100 and a standard deviation of 15. The suppli

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Daily demand for a certain product is normally distributed with
a mean of 100 and a standard deviation of 15. The supplier is
reliable and maintains a constant lead time of 5 days. The cost of
placing an order is $10 and the cost of holding inventory is $0.50
per unit per year. There are no stock-out costs, and unfilled
orders are filled as soon as the order arrives. Assume sales occur
over 360 days of the year.

Your goal here is to find the order quantity and reorder point to
satisfy a 90 percent probability of not stocking out during the
lead time.

a. What type of system is the company
using?
multiple choice
Continuous review system
Periodic review system
b. Find the order quantity.
c. Find the reorder point. (Use
Excel's NORM.S.INV() function to find the z value. Round z value to
2 decimal places and final answer to the nearest whole
number.)