Question: After an initial peak in demand, the demand for iPhone 6 stabilizes at 3 5 0 0 units per week at the Verizon store in
After an initial peak in demand, the demand for iPhone stabilizes at units per week at the Verizon store in Atlanta. The standard deviation of demand is units. The lead time to reorder iPhones is weeks, and the P is weeks. The store manager wants to ensure a service level of
a What is the safety stock the Verizon store has to keep in order to ensure this service level?
b What is the target inventory for the iPhone?
c The store does the inventory review today. It has an onhand inventory of units and there are units in the pipeline inventory. How much should they order?
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