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Given the Following Information:
Order Quantity = 40
Expected Demand σ\sigma

Question 156

Essay

Given the following information:
Order quantity = 40
Expected demand during lead time = 20 units
σ\sigma d LT = 10
desired annual service level = .99
Find:
(i)the expected number of units short per cycle
(ii)the required ROP

Correct Answer:

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(i)E(z)= Q (1 - SL annual)/sd...

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