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.One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of two units a day. Lead time is variable, averaging four days with a standard deviation of one day. Assume normality and that seasonality is not a factor. Use Table. a. When should the manager reorder to achieve the desired probability? (Round your intermediate calculations and final answer to 2 decimal places.) ROP b. Which of the following assumptions would be violated if seasonality were present? Constant lead time Constant demand Demand and lead time independence
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