An Apple Distributor has an average demand of 5,000 iPads per month with a standard deviation of
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Question:
An Apple Distributor has an average demand of 5,000 iPads per month with a standard deviation of 500 iPads. The unit cost is $600.00. The annual ordering cost is $210 per unit. The distribution runs a lean operation, and the holding rate is twenty percent of the unit cost. The distributor operates eleven months out of the year. On average an order takes three days for delivery with a standard deviation of 24 hours.
Question: Calculate the safety stock.
Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
Posted Date: