Daily demand for a certian product is normally distributed with a mean of 100 and a standard deviation of 15. The supplier is reliable and maintains a constant lead time of 5 days. The cost of placing a order is $10 and the cost of holding inventory is $0.50 per unit per year. Sales occur over 360 days of the year. Your goal is to find order quantity and reorder point to satisfy a 95 percent profitability of not stocking out during the lead time.
A) What inventory model do you propose?
B) What is the order quantity?
C) What is the reoder
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