Question 5.83

5.83 Inventory control.

OfficeShop experiences a one-week order time to restock its HP printer cartridges. During this reorder time, also known as lead time, OfficeShop wants to ensure a high level of customer service by not running out of cartridges. Suppose the average lead time demand for a particular HP cartridge is 15 cartridges. OfficeShop makes a restocking order when there are 18 cartridges on the shelf. Assuming the Poisson distribution models the lead time demand process, what is the probability that OfficeShop will be short of cartridges during the lead time?

5.83

0.1805.