One of the hot sellers for the Wonka Toy store is the Chocolate Factory Board Game....

 

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One of the hot sellers for the Wonka Toy store is the Chocolate Factory Board Game. The store uses a periodic review inventory system. The review period for the board game is 4 weeks, while the lead time to obtain the board game is 1 week. The demand for the board game is normally distributed with a mean of 200/week and a standard deviation of 20/week. The store uses a service level of 90%. If the on-hand quantity in inventory is 50 units, how much should the store order? What is the value of the Target inventory and Safety Stock the store is maintaining? One of the hot sellers for the Wonka Toy store is the Chocolate Factory Board Game. The store uses a periodic review inventory system. The review period for the board game is 4 weeks, while the lead time to obtain the board game is 1 week. The demand for the board game is normally distributed with a mean of 200/week and a standard deviation of 20/week. The store uses a service level of 90%. If the on-hand quantity in inventory is 50 units, how much should the store order? What is the value of the Target inventory and Safety Stock the store is maintaining?

Answer rating: 100% (QA)

Given data Review Period T 4 weeks Lead Time L 1 week Mean Demand D 200 unitsweek Stand... View the full answer