The daily demand for a product is 17 units with a standard d

The daily demand for a product is 17 units with a standard deviation of 2.6 units. The review period is 30 days with a lead time of 14 days. Management has a set policy of satisfying 95% of demand from items in stock. At the beginning of the review period, there are 120 units in inventory. How many units should be ordered?

Solution

30 * 17 = 510

30 * 14 = 420

510 - 420 = 90

120 - 90 = 30

we need to ordr 30 units