Question: For a given product, lets assume an economic order quantity of 200 units; where the annual demand is 1,000 units. Per Management feedback, the desired

For a given product, lets assume an economic order quantity of 200 units; where the annual demand is 1,000 units. Per Management feedback, the desired probability of stocking out is 5%. From statistical analysis of this product, the standard deviation of demand during lead time L = 25 units, and the manufacturing lead time is 15 days.

a)- Determine the safety stock needed

b)- Determine the reorder point. Assume that demand is over a 250-workday year.

c)- How many need to be ordered when stock on hand gets down the reorder point?

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