Question: Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $692 per unit. The holding cost at one
Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $692 per unit. The holding cost at one of Nectar's US distribution centers (DCs) is 32% the purchase cost per unit per year. Weekly demand for the bed frames at the DC is normally distributed with a mean of 489 units per week and a standard deviation of 67 units per week. Nectar Sleep would like to maintain a 93% cycle service level for its bed frames. Suppose that Nectar Sleep reviews its inventory continuously and that lead times for orders placed with the supplier are normally distributed with a mean of 5 week(s) and a standard deviation of 2 week(s). Compute the safety stock required to meet the desired service lehil for Nectar Sleep. - Carry all calculations to at least 3 decimal places. a. 1460.4 b. 1443.5 c. 2968.2 d. 1978.8 e. 3905.4 f. 221.1 g. 261.6
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