The probability that the supply of circuit boards will be exhausted before the order is received if boards are reordered when the amount on hand drops to 625 boards is 0.1093.
After an order is placed, (X) days will pass before the company runs out of stock.
X = stock/demmand
=625 / 85
=7.35
Using the normal distribution as a baseline,
Mean (μ) = 6
1.10 = Standard deviation
Z-score for X=7.353 is as follows,
z = x - mean / SD
= 7.35 - 6 / 1.10
=1. 23
A score of 1.23 is in the 0.8907th percentile, per the z-score table. As a result, the likelihood that the delivery will take more than 7.353 days is,
P(X > 7.35) = 1 - 0.8907
=0.1093
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