Question: In a continuous review inventory system, the lead time for door knobs is 4 weeks. The standard deviation of demand during the lead time is
In a continuous review inventory system, the lead time for door knobs is 4 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 98 percent. The supplier of door knobs streamlined its operations and now quotes a 1 week lead time. Refer to the standard normal table for z-values. How much can the safety stock be reduced without reducing the 98 percent cycle-service level? The safety stock can be reduced by door knobs. (Enter your response rounded to the nearest whole number.)
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