Given the following information: Expected demand during a lead time = 600 kg Standard deviation of demand
Question:
Expected demand during a lead time = 600 kg
Standard deviation of demand during a lead time= 52 kg
Acceptable stock-out risk during a lead time = 4 percent
a. What amount of safety stock is appropriate?
b). At what level of inventory should this item be reordered?
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
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