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Daily demand for a product is normally distributed with a mean M= 12 units and standard deviation Q= 4 units. Lead time is 9 days. The order quantity for this item is set at a 12-day supply.
a. If a minimum probability of satisfying demand per cycle of 0.80 is desired, what is the reorder point?
b. If a fill rate of 9% is desired, what is the reorder point?
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