Question: A company manages its inventory for a specific item using the periodic review inventory model with 5 days between orders. It is currently time to
A company manages its inventory for a specific item using the periodic review inventory model with 5 days between orders. It is currently time to place an order, and the company notes that there are 150 items on hand. The item to be replenished has a lead time of 2 days with a daily demand of 370 units. The standard deviation of demand during the uncertainty period has been calculated to be 75. If the company wants to have at least a 90% service level for this item, what should its order quantity be?
| Standard Normal Table | |
| Service level | z value |
| 0.90 | 1.28 |
| 0.95 | 1.65 |
| 0.98 | 2.05 |
| 0.99 | 2.33 |
The order quantity is ___ units. (Enter your response rounded up to the next whole number.)
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