Question: 9 . The inventory planners at ABC Electronics have recently become aware that variation in the delivery of a key item from the supplier was
The inventory planners at ABC Electronics have recently become aware that variation in the delivery of a key item from the supplier was causing a shortage problem. It has been decided that safety stock should be added to the order quantity to prevent stock out. After researching the item, the following planning data was detailed: Average demand per day is units Replenishment lead time is days Standard deviation of supply lead time is days Standard deviation of demand is units Target customer service level is hint: a What would be the safety stock on this item? b What would be the new reorder point?tableInputsAverage DemanddayLead Time per Day,,Standard Deviation of Demand day,,Target Customer Service Level,,
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