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Gainesville Cigar stocks Cuban cigars that have variable 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 1 week. Demand is also a variable and normally distributed with a mean of 250 cigars per week and a standard deviation of 23 cigars. Refer to the standard normal table for z-values.
This exercise contains only parts a and b.
a) For a 96% service level, what is the ROP?
The reorder point is cigars (round your response to the nearest whole number).
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