Product One is sold at a retail store for $5 per unit. Product One has a...
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Product One is sold at a retail store for $5 per unit. Product One has a weekly demand of 1,000 units with an average lead time of 4 weeks and a standard deviation of lead time of 2 weeks. Based on this scenario and assuming a 95% service level, what is the reorder point value (.e. round to two decimal places) and what is the stockout risk percentage? Product One is sold at a retail store for $5 per unit. Product One has a weekly demand of 1,000 units with an average lead time of 4 weeks and a standard deviation of lead time of 2 weeks. Based on this scenario and assuming a 95% service level, what is the reorder point value (.e. round to two decimal places) and what is the stockout risk percentage?
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To calculate the reorder point value and the stockout risk percentage we need to consider the demand ... View the full answer
Related Book For
Operations Management Processes and Supply Chains
ISBN: 978-0133872132
11th edition
Authors: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Posted Date:
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