Setting up the reorder point, Other Management

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Setting up the reorder point

Assignment:

We should set the reorder point R for an item, whose demand during lead time is uncertain. We have a very rough model of uncertainty - the lead time demand is uniformly distributed between 5000 and 20000 pieces. Set the reorder point in such a way that the service level is 95%.

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Other Management: Setting up the reorder point

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