Question: Hello, i'm not understanding this exercise. Can I get a detailed explanation? Thanks. fMercy General Corp. Buys electric motors to integrete into its production of
Hello, i'm not understanding this exercise. Can I get a detailed explanation? Thanks.


\fMercy General Corp. Buys electric motors to integrete into its production of digital machines. The table below gives the monthly use of motors during the previous year (52 working weeks) : -----------EI The lead time is 3 weeks. The management doesn't want more than one stockout every 5 orders. 1) What level of safety stock should Mercy General have? 2) In this case what would be the appropriate re-order point ? 3) The management now wants a 95% service level, so what number of motors should be kept in the safety stock? 4) After a stock taking you nd out that your safety stock is 10 electric motors. What level of service does this correspond to
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