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 is
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 100 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 tablefor 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 enter your response here door knobs. (Enter your response rounded to the nearest whole number.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
