Cycle Distribution Normal

 Scorekeeper, Inc., manufactures stadium scoreboards. Table 1 illustrates the demand for
Scorekeeper’s scoreboards over the past 25 days. The mean of daily demand in 6 units.
a. Is the demand distribution normal? How do you know?
b. Calculate the standard deviation for daily demand. Assume in this case that the performance
cycle is constant.

Table 2 summarizes Scorekeeper’s performance cycles over the past 40 replenishment. The
expected cycle duration is 12 days.
c. Is the performance cycle distribution normal? How do you know?
d. Calculate the standard deviation for the performance cycle.
e. Given you answers to parts (b) ad (d), find the safety stock required at 1 combined standard
deviation under conditions of demand and performance cycle uncertainties.

f. If the typical order quantity is 36 units, find the average inventory at 3 standard deviations
under demand and performance uncertainty.
g. Scorekeeper is striving for a 99 percent product availability level. Given the above information
as well as your answer to part (e), find the function value of the normal loss curve, f(k).
h. Use Table 7.14 to find the value for k, given your answer to part (g), and calculate the required
safety stock for the desired 99 percent availability level.
i. What would be the required safety stock for 99 percent availability should the order quantity
change to 30 units?