Service probability-how many units should be ordered

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Reference no: EM131790078

Daily demand for a product is 50 units, with a standard deviation of 35 units. The review period is 5 days and the lead time is 4 days. At the time of review there are 60 units in stock.

If 95 percent service probability is desired, how many units should be ordered? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)

Reference no: EM131790078

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