Question: Average daily demand 3 2 5 cases per day Standard deviation of daily demand 9 5 cases per day Average Lead Time 2 days (
Average daily demand cases per day
Standard deviation of daily demand cases per day
Average Lead Time days constant
Inventory holding cost of the item's value per year
Purchase Price $ per case
Order Cost $ per order
Stockout Cost $ per case
Desired Service Level
Assume the company operates days per year
What should the level of safety stock be for this item to meet the desired service level assuming lead time is always days and the zscore for a service level of is
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