Question: need help ASAP Demand for Company A is relatively stable at an average of 600 units per week, with an estimated standard deviation of 60
need help ASAP
Demand for Company A is relatively stable at an average of 600 units per week, with an estimated standard deviation of 60 units for the weekly demand. Company A plans to set its reorder point at 600 units, which equals the average weekly demand Company A faces. The delivery lead time is 7 days (i.e. one week). Which of the following is true? 400 is the optimal reorder point for Company A to set. 600 is the optimal reorder point for Company A to set. Company A should set a reorder point lower than 200 in order to have a negative safety stock buffer. Company A should set a reorder point higher than 200 in order to have a positive safety stock buffer
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