Question: John Doe Enterprises utilizes a continuous review inventory system. Whenever inventory position falls to 2 5 0 unites, an order for 1 , 0 0
John Doe Enterprises utilizes a continuous review inventory system. Whenever inventory position falls to unites, an order for additional units is placed. Lead time for the product is weeks. Average weekly demand is units; however, demand is known to fluctuate widely. Standard deviation of weekly demand is units.
a What service level is John Doe Enterprises maintaining?
b John Doe has decided to maintain no safety stock inventory. With what probability will the company stock out during ay given inventory cycle? Show how you arrived at your answer.
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