MN Company currently has 200 units of a product on hand and that it orders every two weeks when the salesperson visits the premises. Demand for the product averages 20 units per day with a standard deviation of 5 units. Lead time for the product to arrive is seven days. Management has a goal of 95 percent probability of not stocking out of this product.
The salesman is due to come in late this afternoon when 180 units are in stock (assuming that 20 are sold today). However many units should be ordered?