Question: 7. If a 90% service level is expected, what level of safety stock should be held for the demand pattern shown below? Demand Date Actual

7. If a 90% service level is expected, what level of safety stock should be held for the demand pattern shown below? Demand Date Actual Forecast Dec-00 104 100 Jan-01 96 100 Feb-01 102 100 Mar-01 93 100 Apr-01 92 100 May-01 103 100 Jun-01 91 100 Jul-01 96 100 Aug-01 95 100 Sep-01 94 100 Oct-01 96 100 Nov-01 101 100 Dec-01 102 100 (6 marks)

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