What should be the reorder point

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The injection molding department of a company uses 40 pounds of a powder a day. Inventory is reordered when the amount on hand is 240 pounds. Lead time averages five days. Lead time is normally distributed and has a standard deviation of two days. If the department wants to reduce the stockout rate to 5%, what should be the reorder point?

Reference no: EM131366870

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