A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is six days. Usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard
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A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is six days.
Usage of the material during lead time is
deviation of 4 pounds. When should the raw material be reordered if the acceptable risk of a stockout is 3%?
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