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Roni1985
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Homework Statement
There are 20 customer locations, the demand in each location is normal with mean 60 and SD 20. All 20 locations have independent probabilities.
The goal is to cover all of the demand in a month at least 95% of the times. What's the minimum total inventory the company should hold?
Homework Equations
The Attempt at a Solution
It doesn't sound like I need to find the confidence interval. So, I know that the total mean is 1200 and the total standard deviation is 400. So, since the sum is also normal, I just go two SDs to the right to find the 95%.
If I got 2 SDs to the right, I get 2000.
Is this the correct method to use here?
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