Management has stated that it will tolerate one stockout per year. The forecast of annual demand for
Question:
Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead time is 2 weeks. Sales history for the past 10 weeks follows. Calculate:
a. Sigma for the demand history time interval.
b. Sigma for the lead time interval.
c. The service level.
d. The safety stock required for this service level.
e. The order point.
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a Average squared deviation 1200000 10 120000 Sigma 120000 346 units b Sigma for lead time interval ...View the full answer
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Related Book For 
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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