... 12.34 Gainesville Cigar stocks Cuban cigars that have vari- able lead times because of the difficulty in importing t

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... 12.34 Gainesville Cigar stocks Cuban cigars that have vari- able lead times because of the difficulty in importing t

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12 34 Gainesville Cigar Stocks Cuban Cigars That Have Vari Able Lead Times Because Of The Difficulty In Importing T 1
12 34 Gainesville Cigar Stocks Cuban Cigars That Have Vari Able Lead Times Because Of The Difficulty In Importing T 1 (45.48 KiB) Viewed 16 times
... 12.34 Gainesville Cigar stocks Cuban cigars that have vari- able lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand is also a variable and nor- mally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) For a 90% service level, what is the ROP? b) What is the ROP for a 95% service level? c) Explain what these two service levels mean. Which is preferable? PX
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