Question: An improved ordering and delivery system helps reduce the lead time from 2 weeks to 1.5 weeks and allows Best Buy to order in smaller

An improved ordering and delivery system helps reduce the lead time from 2 weeks to 1.5 weeks and allows Best Buy to order in smaller batch sizes such that its order size now is 10 units. What will be the total % reduction in cycle+safety+pipeline stocks?

Given:

mean demand per period= 5
std.dev. of demand per period= 1.5
mean leadtime in periods= 2
std.dev. of leadtime in periods= 0
desired service level alpha= 0.95
Order Size= 20
mean leadtime demand (DDLT)= 10
std.dev. leadtime demand (DDLT)= 2.12132
Order Size Q= 69
Reorder Point R= 13.48926
Cycle Stock= 10
Safety Stock= 3.489261
Pipeline Stock= 10

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