Waec Model Questions Vol1 2022 Commerce Question 10
Practice objective / multiple choice question 10 from the 2022 Waec Model Questions Vol1 Commerce examination.
A retail store experiences an average daily demand of 45 units for a certain product. Daily demand is normally distributed with a standard deviation of 8 units. The supplier's lead time is 5 days. The store wishes to maintain a 95 % service level (i.e., a 95 % probability of no stock‑out during the lead time). Using a Z‑value of 1.65 for a 95 % service level, what should be the reorder point (in units) for this product?
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About This Question
This is Waec Model Questions Vol1 2022 Commerce Question 10. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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