Question: Now assume that average demand per day is 27.4 items and that the standard deviation of demand is 3.75 items. When the company places an

Now assume that average demand per day is 27.4

Now assume that average demand per day is 27.4 items and that the standard deviation of demand is 3.75 items. When the company places an order the average lead time is 10 days and the standard deviation of lead time is 2.5 days. Based on these parameters calculate demand during the reorder time: Mean Lead Time Demand: [ Select] Standard Deviation of Lead Time Demand: [Select] If the company wants to achieve a 95% service level, at what stock level should they issue a new order? [Select] This policy will result in what level of safety stock: [ [ Select]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!