Question: In a continuous review inventory system , the lead time for door knobs is 9 weeks. The standard deviation of demand during the lead time
In a continuous review inventory system , the lead time for door knobs is 9 weeks. The standard deviation of demand during the lead time is 75 units. The desired cycle -sender level is 92 percent . The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 92 percent cycle-service level?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
