1. (a)A computer products store colour graphics monitors, and the daily demand is normally distributed, with a mean of 1.6 monitors and standard deviation of 0.4 monitor. The lead time to receive an order from the manufacturer is 15 days. Determine the reorder point that will achieve a 98% service level.
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(a)A computer products store colour graphics monitors, and the daily demand is
(b)Lumumba Carpet Discount Store sells Super Shag carpet. The average daily customer demand for the carpet stocked by the store is normally distributed, with a mean daily demand of 30 metres and a standard deviation of 5 metres of carpet per day. The lead time for receiving a new order of carpet is 10 days. Advice the the store if they desire a reorder point and safety stock for a service level of 95%, with the probability of a stockout equal to 5%.
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