Assume that the Best Buy store in Exercise 3 has a policy of ordering cell phones from
Question:
Assume that the Best Buy store in Exercise 3 has a policy of ordering cell phones from the supplier in lots of 500. Weekly demand for cell phones at the store is normally distributed, with a mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply an order. If the store manager is using a continuous review policy and targeting a fill rate of 99 percent, what safety inventory should the store carry? What should its ROP be?
Data From Exercise 3
Weekly demand for cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should its ROP be?
Step by Step Answer:
Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra