The daily demand for integrated circuit boards by mythical Reliance Computers, which assembles computers, is 80 units.

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The daily demand for integrated circuit boards by mythical Reliance Computers, which assembles computers, is 80 units. The daily demand is normally distributed and has a standard deviation of 6 units. The lead time from the supplier is a constant 9 days. If Reliance Computers is willing to accept a stock-out risk of 7%, what is the reorder point and how much of the inventory ordered is safety stock?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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