Critical Thinking Problem

Daily demand for a product is 60 units, with a standard deviation of 10 units. The review period is 10 days and the lead time is 2 days. At the time of review there are 100 units in stock. If 94 percent service probability is desired, how many units should be ordered?

Solution:

Rubric trait No. 1 – Identify the main problem to be solved

Rubric trait No. 2 – Identify the key assumptions involved in this problem.

Rubric trait No. 3 – Evaluating the relevant data in this problem.

Rubric trait No. 4 – Evaluating the validity of the data involved in this problem

Rubric trait No. 5 – Ability to find the solution to this problem.

Rubric trait No. 6 – Ability to draw conclusions from the solution.

Rubric trait No. 7 – Understand the implications of the conclusions.