Mathematics, 28.12.2019 02:31 odelancy14

Suppose there are two bicycle stores selling the same kind of bicycle. demand in bothstores is independent and identically distributed. the demand in each store follows anormal distribution with a weekly average of 40 with standard deviation of 12. bothstores review inventory in real-time and place orders as and when needed. each storewants a customer service level of 97%. the key difference between the stores is thatone store is closer to the supplier and has a lead time of 1 week while the other store isfarther and has a lead time of 2 weeks. a. what is the re-order level and the corresponding safety stock for store 1

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Suppose there are two bicycle stores selling the same kind of bicycle. demand in bothstores is indep...