Final answer:
The question relates to inventory management and a base stock policy with a base stock level of 10 and a lead time of 5. To meet an increase in demand, a company may obtain more resources, like additional PCs. The arrival rate of demand and customer service can be modeled using an exponential distribution.
Step-by-step explanation:
The student's question pertains to a base stock policy in a supply chain management context. A base stock level of 10 implies that the manager aims to maintain an inventory level of 10 units at all times.
With a lead time of 5, this means that an order should be placed before the inventory falls below this threshold so that replenishment arrives just as stock reaches or falls below the base level.
In the context of the examples provided, the store or firm expects customers or demand arrivals at a certain rate, and decisions are made based on this arrival rate and lead time.
If the demand for a firm's service or product increases, like in the case of increasing demand to 15 documents per day, the firm might acquire additional resources, such as more PCs, to meet this demand efficiently.
Similarly, the calculation of the probability of a customer's arrival within a given time frame uses the exponential distribution, which is common in operations research and queueing theory, where such times between events (like customer arrivals) are of interest.