You are a manufacturer of precision components for the automotive industry. Your supplier reviews stock every 4

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You are a manufacturer of precision components for the automotive industry. Your supplier reviews stock every 4 weeks and replenishes it instantaneously. The standard deviation of demand during the lead time is 130 units. The supplier has streamlined its operations and promised a cycle-service level of 99 percent. If the supplier has decided to undertake weekly audits, how much can safety stock be reduced without reducing the 99 percent cycle-service level?

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Operations Management Processes And Supply Chains

ISBN: 9781292409863

13th Global Edition

Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman

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