A trading company has 2 outlets. It has data from the last 12 months of sales of its flagship product, and also with the sales data that had been forecast for each of the months.

The supplier delivery time is known to be two months.

If the company wants to maintain a service level (Cycle Service Level) of 97%, it determines the level of total safety inventory required if the company maintains a local safety inventory in each store. Round the value to the nearest integer.

 

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Demand Observed demand pronosticated Month T1 T2 T1 T2 1 1054 1462 1024 1376 2 752 1148 724 1152 3 1150 1562 1186 1570 4 1198 1562 1250 1618 5 994 1396 1044 1382 6 1022 1452 964 1364 7 962 1340 946 1314 8 1170 1578 1022 1546 9 774 1180 784 1204 10 914 1294 800 1376 11 988 1400 1020 1376 12 1122 1518 1052 1588 Demand Observed demand pronosticated Month T1 T2 T1 T2 1 1054 1462 1024 1376 2 752 1148 724 1152 3 1150 1562 1186 1570 4 1198 1562 1250 1618 5 994 1396 1044 1382 6 1022 1452 964 1364 7 962 1340 946 1314 8 1170 1578 1022 1546 9 774 1180 784 1204 10 914 1294 800 1376 11 988 1400 1020 1376 12 1122 1518 1052 1588

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