Question 12.p.6: ROP for variable demand rate and variable lead time. The mot...

Operations Management

ROP for variable demand rate and variable lead time. The motel replaces broken glasses at a rate of 25 per day. In the past, this quantity has tended to vary normally and have a standard deviation of three glasses per day. Glasses are ordered from a Cleveland supplier. Lead time is normally distributed with an average of 10 days and a standard deviation of 2 days. What ROP should be used to achieve a service level of 95 percent?

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