Question: QUESTION 7 6 points Save Answer Your company stocks three items referred to as SKU1, SKU2, and SKU3. For each product, the company wants to

QUESTION 7 6 points Save Answer Your company

QUESTION 7 6 points Save Answer Your company stocks three items referred to as SKU1, SKU2, and SKU3. For each product, the company wants to enforce a 95% service level policy which avoids shortages with a probability of 95%. Information about these items is given in the table below. Product SKU1 Daily Demand Lead Time Constant at 20 units per day. Normally distributed with an average of 5 days and a standard deviation of 2 days. Normally distributed with an average of 20 Constant at 5 days. units and a standard deviation of 6 units. Normally distributed with an average of 20 Normally distributed with an average of 5 days units and a standard deviation of 6 units. and a standard deviation of 2 days. SKU2 SKU3 Calculate the optimal reorder point and safety stock level for each product. Provide detailed explanations and justifications for your answers. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial 14px A . Ty 46 111 o C

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!