Question: Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard deviation of 16 bags. Ollah uses a continuous inventory review
Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard deviation of 16 bags. Ollah uses a continuous inventory review system to manage inventory of the biscuits. Ollah wants to set the reorder point high enough that there is only a 5% chance of running out before the next order comes in. Assuming that the lead time is a constant 2 weeks, what should the reorder point be?
Step by Step Solution
3.46 Rating (156 Votes )
There are 3 Steps involved in it
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style0 msonumberformatGene... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
436-B-M-L-S-C-M (2779).xlsx
300 KBs Excel File
