Question: In a continuous review inventory system, the lead time for doorknobs is 9 weeks . The standard deviation of demand during the lead time is
- In a continuous review inventory system, the lead time for doorknobs is 9 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 98%. The supplier of doorknobs 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% cycle-service level? (z-score = 2.06)
- The safety stock can be reduced by ____ door knobs (~whole number)
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