Question: Suppose you are a corporate buyer One of your suppliers

Suppose you are a corporate buyer. One of your suppliers delivers a particular part in 12 days on average, with a standard deviation of 3. The daily usage averages 20 units per day with a standard deviation of 4. What is the standard deviation of demand during lead-time? If you use a continuous review policy, how much safety stock would you want on hand to ensure at least 90 percent availability of the part while waiting for replenishment?

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  • CreatedMarch 30, 2015
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