Question: In a continuous review inventory system, the lead time for doorknobs is 9 weeks. The standard deviation of demand during the lead time is100 units.
In a continuous review inventory system, the lead time for doorknobs is 9 weeks. The standard deviation of demand during the lead time is100 units. The desired cycle-service level is 96 percent. The supplier of doorknobs streamlined its operations and now quotes a 1 week lead time.
How much can the safety stock be reduced without reducing the 96 percent cycle-service level?
The safety stock can be reduced by ______ door knobs.
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