Assignment:
You have just issued a replenishment order to your supplier, which is not quite reliable. You have ordered 400 items, but what you will receive is a normal random variable with that expected value, and standard deviation 40 (let us assume that using a continuous random variable is a sensible approximation of the discrete random variable modeling the integer number of received items). After receiving the shipment, you will have to serve a number of customer requests. The amount that your customers ask for is a random variable with expected value 3 and standard deviation 0.3. How many customer requests should you receive in order to have a probability of stockout larger than 10%?
Provide complete and step by step solution for the question and show calculations and use formulas.