Question: Consider a periodic review system, where orders are placed every 2 2 2 2 days. The firm strives to provide a 9 4 . 8
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 deviation of demand per day is
units. Lead time is
daysround Zvalues, standard deviations to two decimal places
Question content area bottom
Part
a How many units of safety stock should be held?
enter your response here
unitsround your response to the nearest integer
b What should the target inventory levelorderupto level be
enter your response here
unitsround 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 be ordered now?
enter your response here
unitsround 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
