Question

The daily demand for 52-inch plasma TVs at Sarah’s Discount Emporium is normally distributed, with an average of 8 and a standard deviation of 2.5 units. The lead time for receiving a shipment of new TVs is 9 days and is constant. Determine the service level for reorder point (ROP) of 84. We are assuming a continuous-review model is used.

Note:
1- Do not round any of your intermediate numbers.
2- Before rounding your final answer, convert it to the percentage format. Once in the percentage format, round it to 2 decimal places.
3- Express the final answer as a percentage with 2 decimal places, for example if the answer is 0.345678, you need to enter, 34.57. Do not use the percentage symbol (%).

Answer 1