ADB has chosen to order its office supplies on a fixed date each week. The average consumption is 25 units per week with a standard deviation of 5, the stock on hand 25, the delivery time 2 weeks and the interval between two orders is one week. The company would like to ensure a 99% level of service. Determine the quantity to order.

Answer rating: 100% (QA)

First We need to calculate the safety stock using the Zscore for a 99 service level Safety Stoc... View the full answer