Question: Fullerton Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates
Fullerton Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 50 weeks a year.
Average demand = 91,000 units/year
Ordering cost = $60.00/order
Holding cost = $4.50/unit/year
Lead time = 9 weeks constant
Standard deviation of weekly demand = 120 units
If Fullerton wants to provide a 95.99% service level, what is the required amount of safety stock? (enter your response rounded to the nearest whole number.)
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