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.)

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!