Question: A.i. I would change their ordering pattern because Laserped wants to maintain a 99% service level, but the standard deviation of 5 units would make

A.i. I would change their ordering pattern
A.i. I would change their ordering pattern because Laserped wants to maintain a 99% service level, but the standard deviation of 5 units would make that difficult with the current ordering pattern. [.ii. The new ROP = d*LT = (20*5)+(2.36*5*sqrl(5)) = 100 + 26.38 = 126 units. [.iii. Average inventory = 20*5 = 100 units Liv. Safety stock = 2.36*5*sqrt(5) = 26.38 = 26 units [.v. Safety stock is the extra stock needed to allow for an uneven demand, acting as a buffer. It provides safety against an unexpected spike in demand

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