Question: Procter & Gamble ( P&G ) is an US - headquartered multinational consumer goods corporation. P&G maintains inventories of its wide range of products. P&G
Procter & Gamble P&G is an USheadquartered multinational consumer goods
corporation. P&G maintains inventories of its wide range of products. P&G uses a
fixedquantity inventory system to manage one of its popular household cleaning
products. Based on historical data, the demand for this product is normally distributed.
The lead time is weeks. The mean of lead time demand is units and the standard
deviation of lead time demand is units. Due to the competitive environment, a
stockout of during lead time is considered acceptable.
Question a
What is the amount of safety stock that needs to be kept for this particular household
product? When should the order for the product be placed?
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