paper more

a.Brown also considered whether it was possible to fit a normal probability distribution to the historical demand.

i.What are the mean and standard deviation of the demand for the SKU? (The normal distribution is completely specified once the mean and standard deviation are known.)

ii.Generate a histogram of the observed demand values for the Great White …

iii.Compare the cumulative frequencies of your histogram with those of the histogram of a normal distribution with mean 40 and standard deviation 20 shown in Exhibit 1. (The histogram is also copied into columns Q – S in the Analysis #2 worksheet.) Comment on the fit of the normal distribution to the demand for great white.

b.The inverse cumulative function of a demand distribution takes an in-stock rate and returns the order-up to-point that gives this in-stock rate.1 Create a table of order-up-to points for given in-stock rates

c.Construct a table of fill rates given inventory order points…

d.Calculate the order-up-to point that has in-stock rate just greater than or equal to the critical fractile described in #1(b-iii) using the method described in Analysis #2(b).

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