An industrial company requires argon gas cylinders for its work

Management Oct 29, 2020

An industrial company requires argon gas cylinders for its work. Weekly demand is normally distributed with a mean of 35 and a standard deviation of 15. Demands are independent across weeks. Orders are placed weekly and the lead time to receive an order is 3 weeks.
You are required to analytically show whether the following statement is true or false: "An OUT level to achieve an in-stock probability of 97% is smaller than the OUT level to achieve a fill rate of 97%."