Question: Management at the CG (same as question #4) is now concern as they run out of stock too often. Having reviewed the inventory policy, CG

Management at the CG (same as question \#4) is now concern as they run out of stock too often. Having reviewed the inventory policy, CG management found that the lead-time for the buckets is 310 days, with a standard deviation of 40 buckets. Management decided on a 95% service probability for the buckets. a. How many buckets should CG carry as safety stock? [5] b. What is the appropriate reorder point? [4] Management at the CG (same as question \#4) is now concern as they run out of stock too often. Having reviewed the inventory policy, CG management found that the lead-time for the buckets is 310 days, with a standard deviation of 40 buckets. Management decided on a 95% service probability for the buckets. a. How many buckets should CG carry as safety stock? [5] b. What is the appropriate reorder point? [4]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
