Question: Example 2 : Safety stock continuous review system ( Q ) OMEGA, a Swiss watchmaker, has a repair center located in Miami which covers the
Example : Safety stock continuous review system Q
OMEGA, a Swiss watchmaker, has a repair center located in Miami which covers the South East of the USA. The most common service offered by the center is to replace watch bracelets. The demand for this service is replacements per year with a weekly standard deviation of units The manager of the repair center has to decide how many bracelets he needs to keep on inventory to ensure a service level of The lead time for receiving the watch bracelets from Switzerland is weeks.
a What is the safety stock the repair center has to keep in order to ensure this service level?
b What is the reorder point for the watch bracelets
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