stat question

The Bell Computer Company is considering a plant expansion enabling the company to begin produc±onof a new computer product. You have obtained your MBA from the University of Phoenix and, as a vice-president, you must determine whether to make the expansion a medium- or large- scale project. Thedemand for the new product involves an uncertainty, which for planning purposes may be low demand,medium demand, or high demand. The probability es±mates for the demands are 0.20, 0.50, and 0.30,respec±vely.Case Study – Kyle Bits and BytesKyle Bits and Bytes, a retailer of compu±ng products sells a variety of computer-related products. One ofKyle’s most popular products is an HP laser printer. The average weekly demand is 200 units. Lead ±me(lead ±me is deFned as the amount of ±me between when the order is placed and when it is delivered)for a new order from the manufacturer to arrive is one week.If the demand for printers were constant, the retailer would re-order when there were exactly 200printers in inventory. However, Kyle learned demand is a random variable in his Opera±ons Managementclass. An analysis of previous weeks reveals the weekly demand standard devia±on is 30. Kyle knows if acustomer wants to buy an HP laser printer but he has none available, he will lose that sale, plus possiblyaddi±onal sales. He wants the probability of running short (stock-out) in any week to be no more than6%.