Question: In a continuous review inventory system, the lead time for doorknobs is 5 weeks. The standard deviation of demand during the lead time open parentheses
In a continuous review inventory system, the lead time for doorknobs is 5 weeks. The standard deviation of demand during the lead time open parentheses sigma subscript d L T end subscript close parentheses is 85 units. The desired cycle-service level is 99 percent. The supplier of doorknobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level? (Use Z = 2.33; round to the nearest unit)
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