Question: An organization implemented a fixed order quantity material management system. The daily demand is normally distributed, as is the lead times. The inventory safety stock's
An organization implemented a fixed order quantity material management system. The daily demand is normally distributed, as is the lead times. The inventory safety stock's service level corresponds to a z-score of 2.33.
The average daily demand is 43 units
With a variance of daily demand of 23
The average lead time is 4 days
with a variance of lead time of 1.
Determine the required safety stock in units. Round to the nearest whole unit, if applicable.
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