A company uses the periodic review inventory model to calculate its reorder quantity. The company currently places

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A company uses the periodic review inventory model to calculate its reorder quantity. The company currently places orders weekly. The item is produced and shipped from Asia with a lead time of eight weeks. The company currently has 1000 items on hand. If the company uses the product at the rate of 250 per week with a standard deviation of daily usage of 50 over the uncertainty period, what order quantity is needed to achieve a service level of 98%?
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Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

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