A.
1 answer:
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Answer:
The correct answer to the following question will be "280 units".
Step-by-step explanation:
The given values are:
Mean = 200
Standard deviation = 30
Let's ask that the supplier needs to reach 99.9% of the standard of operation. To reach this quality of operation, she has to preserve an inventory of
Now,
⇒
On putting the values, we get
⇒
⇒
⇒
290 units would then accomplish a level of service of 99.9%.
Half unpurchased units can indeed be purchased at $30000 i.e. no failure. If he requests 300, there will be losses on 5 products that are unsold.
Hence, ordering 280 units seems to be preferable