Question 12.11: Computing Stockout Risk for the Fixed-Interval Model Given t...

Operations Management

Computing Stockout Risk for the Fixed-Interval Model
Given the following information:
LT = 4 days
OI = 12 days
$\overline{d}$ = 10 units/day
$σ_d$ = 2 units/day
A = 43 units
Q = 171 units
Determine the risk of a stockout at
a. The end of the initial lead time.
b. The end of the second lead time.

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