Question: In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is

In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 99 percent. The supplier of door knobs streamlined its operations and now quotes a 1-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level?
What is the standard deviation of demand during the 9-week lead time?
What is the average demand during the 9-week lead time?
What reorder point results in a cycle-service level of 99 percent?
What is Leaky Pipes optimal order quantity?
What is the optimal number of orders per year?
What is the optimal interval (in working days) between orders?
What is the demand during the lead time?
What is the reorder point?
What is the inventory position immediately after an order has been placed?

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