Question: A company guarantees a 9 5 % cycle - service level for all of its stock items. The company replenishes its stock from a single
A company guarantees a cycleservice level for all of its stock items. The company replenishes its stock from a single supplier who guarantees a lead time of weeks. For an item with a normally distributed demand, the mean demand per week is units, and the standard deviation of demand is units. What should be the reorder level for this item to maintain a cycleservice level? Additionally, what should be the reorder level for this item to maintain a cycleservice level?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
