Question: Consider a periodic review system, where orders are placed every 20 days. The firm strives to provide a 95.05% cycle service level. Demand averages 430
Consider a periodic review system, where orders are placed every 20 days. The firm strives to provide a 95.05% cycle service level. Demand averages 430 units per day, and the standard deviation of demand per day is 104 units. Lead time is 12 days (round Z-values, standard deviations to two decimal places)
c.) Suppose that it is time to review the item. There are 151 units in inventory, and there is an outstanding backorder for 453 units. An order for 122 units is on the way. How many units should be ordered now? (round to nearest integer)

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