Question: Average monthly demand: 5 0 0 units Lead time for replenishment: 2 months Desired service level: 9 5 % Standard deviation of monthly demand: 5

Average monthly demand: 500 units
Lead time for replenishment: 2 months
Desired service level: 95%
Standard deviation of monthly demand: 50 units What options for sourcing and stock planning can Rajesh choose to avoid a stock-out situation in the future?
What kind of products are specialty goods? What model for inventory planning is optimal for such products?

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