Weekly demand for Huawei cell phones at a Wanda Square store is normally distributed, with a mean
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Question:
Weekly demand for Huawei cell phones at a Wanda Square store is normally distributed, with a mean of 500 and a standard deviation of 300. Huawei takes 4 weeks to supply a Wanda Square store order.
Study Questions:
(b) Reconsider Wanda Square store in a), re-evaluate the safety inventory of the Huawei cell phones that Wanda Square store must carry if the standard deviation of the lead time is 2 weeks?
(c) The store manager has decided to follow a periodic review policy to manage inventory of cell phones. She plans to order every three weeks. Given a desired CSL of 95 percent, how much safety inventory should the store carry? What should its OUL be?
Related Book For
Managerial Decision Modeling with Spreadsheets
ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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