Question: L M N O 0 0 0 0 A B D E F G I 1 a retail store's weekly demand for a certain product

L M N O 0 0 0 0 A B D E F G I 1 a retail store's

L M N O 0 0 0 0 A B D E F G I 1 a retail store's weekly demand for a certain product is 550 units and a o=375 unit. The weekly demand 2 for this product is normally distributed. The supplier takes 5 weeks to supply this retail store. The store is 3 targeting a CSL (cycle service level: example can be found in page 358) of 95%. How much safety inventory 4 of this product should the retail store carry? What should its ROP (reorder point) be? 5 6 Mean demand during lead time, DL 7 OL (demand during lead time) 8 ss should be: 3% 9 10 Reorder point = 2% 11 12 13 If the store's reorder point is 4000 instead of the answer you get, what CSL does the store achieve? 14 What is the safety stock? 15 16 ss is 3% 17 CSL = 2% 0 0 0 0

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