A firm has determined that its optimal EOQ ordering quantity is 1,250 units for a certain product. Average daily demand is 90 units with a standard deviation of 8 units. Order lead time is 7 days. To maintain a 95% service level, what should the target inventory level be?

a. Target inventory level cannot be determined from the information given

b. 1,940

c. 1,250

d. More than 2,000

Answer rating: 100% (QA)

Given that EOQ 1250 units Demand D 90 Units Standard Deviation SD 8 Units Lead Time LT 7 Da... View the full answer