The standard deviation of demand during the lead time is 100 units. a. Calculate the safety stock
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The standard deviation of demand during the lead time is 100 units.
a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, and 99.99%.
b. Calculate the change in safety stock required to increase the service levels from 75 to 80%, 80 to 85%, 85 to 90%, 90 to 95%, and 95 to 99.99%. What conclusion do you reach?
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Related Book For
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
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