Question: If I calculated SS value using monthly units (the std calculated in excel was the monthly standard deviation and we also converted the lead time

If I calculated SS value using monthly units (the std calculated in excel was the monthly standard deviation and we also converted the lead time from 1 week to 7/30 months), should I multiply the SS by 12 for the total annual inventory cost to make all time units consistent (since everything else in that total annual inventory cost equation is annual)?

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!