Answer Happy

A warehouse temporarily holds printers for a chain of computer
stores. Trucks from the stores arrive periodically to pick up
printers. Exactly when pick-ups occur and how many printers are
picked up is uncertain because it depends on the demand at the
stores. The time between the arrival of each truck can be
approximated by an exponential distribution with a mean of 2 days.
The number of printers that are requested at each pick-up can be
approximated by a normal distribution with a mean of 12 and a
standard deviation of 1. The time to receive an order from the
factory can be approximated by a normal distribution with a mean of
7 days and a standard deviation of 1 day. The warehouse wants to
satisfy at least 90% of the demand from the stores. The warehouse
is considering the reorder point scenarios (rows) in the following
table.
Order Size 80 120 160 200 80 120 160 200 Reorder Point 50 50 50 50 60 60 60 60