If sigma is 130 units, and the demand during the lead time is 250 units, calculate the

Question:

If sigma is 130 units, and the demand during the lead time is 250 units, calculate the safety stock and order point for:

a. A 50% service level.

b. An 85% service level.

Use the table in Figure 11.5 as help to calculate your answer.

Service Level (%) Safety Factor 50 0.00 75 0.67 80 0.84 85 1.04 90 1.28 1.56 94 95 1.65 96 1.75 1.88 97 98 2.05 99 2.33

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Related Book For answer-question

Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

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Question Posted: Jul 01, 2019 08:42 AM

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If sigma is 130 units, and the demand during the lead time is 250 units, calculate the

Question:

Service Level (%) Safety Factor 50 0.00 75 0.67 80 0.84 85 1.04 90 1.28 1.56 94 95 1.65 96 1.75 1.88 97 98 2.05 99 2.33 99.86 3.00 99.99 4.00 FIGURE 11.5 Table of safety factors.

Step by Step Answer:

a Safety stock zero Order po...View the full answer

Introduction To Materials Management

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