Question: Consider an inventory system, where the initial stock is 1 3 units. The demand as well as the lead times are random variables. Demand 5

Consider an inventory system, where the initial stock is 13units. The demand as well as the lead times are
random variables.
Demand 5)56)47)38)2
Probability 0.350.420.180.05
Lead time 234
Probability 0.500.200.30
There are three reorder points, RP1, RP2 and RP3 at levels of 12 units, 8 units and 4 units respectively
whereas three reorders, quantity of 9units, 5units and 3units respectively, can be outstanding at a time.
Find the service level and the average stock held for the given reorder points and the reorder quantity.
Simulate the system for 10 days.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!