Pep Zone sells auto parts and supplies including a popular multi-grade motor oil. When the stock of this oil drops to 40 gallons, a replenishment order is placed. The store manager is concerned that sales are being lost due to stock outs while waiting for a replenishment order. It has been determined that demand during replenishment lead-time is normally distributed with a mean of 25 gallons and a standard deviation of 9 gallons. The manager would like to know the probability of a stock out during replenishment lead-time. In other words, what is the probability that demand during lead-time will exceed 30 gallons?

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Answered: Pep Zone sells auto parts and supplies…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.4: Distributions Of Data

Problem 19PFA

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Pep Zone sells auto parts and supplies including a popular multi-grade motor oil. When the stock of this oil drops to 40 gallons, a replenishment order is placed. The store manager is concerned that sales are being lost due to stock outs while waiting for a replenishment order. It has been determined that demand during replenishment lead-time is normally distributed with a mean of 25 gallons and a standard deviation of 9 gallons. The manager would like to know the probability of a stock out during replenishment lead-time. In other words, what is the probability that demand during lead-time will exceed 30 gallons?

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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