Professional Documents
Culture Documents
F(Z) is the probability that a variable from a standard normal distribution will be less than or equal to Z, or
alternately, the service level for a quantity ordered with a z-value of Z.
L(Z) is the standard loss function, i.e. the expected number of lost sales as a fraction of the standard
deviation. Hence, the lost sales = L(Z) x DEMAND
0
Z
z z-scale