Question: Consider a periodic review system, where orders are placed every 2 0 days. The firm strives to provide a 9 4 . 8 4 %
Consider a periodic review system, where orders are placed every days. The firm strives to provide a cycle service level. Demand averages units per day, and the standard d of demand per day is units. Lead time is days round values, standard deviations to two decimal places
a How many units of safety stock should be held? units round your response to the nearest integer
b What should the target inventory level orderupto level be units round your response to the nearest integer
c Suppose that it is time to review the item. There are units in inventory, and there is an outstanding backorder for units. An order for units is on the way. How many units should ordered now? units round your response to the nearest integer
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
