Question: 1) Same problem statement Weekly demand for cereal boxes at a retailer is normally distributed with a mean of 900 boxes and a standard deviation
1) Same problem statement
Weekly demand for cereal boxes at a retailer is normally distributed with a mean of 900 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 3,900 boxes. The order quantity to the supplier is fixed at 4,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $200, each box costs the retailer $10, and the inventory holding cost is 20% per year.
If the retailer wants to achieve a 90% service level (use the z-value with one decimal, as in Table 13.4 of the textbook), what should be the safety stock value
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
