Question: Given the following data for five inventory items at a local hardware outlet (open 310 days/year), complete the table by determining the expected demand during
- Given the following data for five inventory items at a local hardware outlet (open 310 days/year), complete the table by determining the expected demand during the period of vulnerability, the safety stock and the quantity that should be ordered. The store places orders every thirty days and has a six day lead time. Be sure to show your work for full credit.
| Item | Average daily demand | Standard Deviation of daily demand | Service level (%) | Inventory Currently on Hand | Expected demand during T+L | Safety stock | Order quantity |
|
A
|
0.75 |
0.5 |
90 |
2 |
|
|
|
|
B
|
5 |
2 |
99 |
0 |
|
|
|
|
C
|
20 |
4 |
95 |
300 |
|
|
|
|
D
|
10 |
3 |
85 |
20 |
|
|
|
|
E
|
1 |
.25 |
50 |
15 |
|
|
|
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