Recommend a target inventory level needed for a five-day period based on the following; to be...

 

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Recommend a target inventory level needed for a five-day period based on the following; to be on the cautious side, assume each day's supply will be equal to the average daily demand for all locations combined, plus three standard deviations: Because the mean and standard deviations might not already be integers, round the daily demand up to the nearest whole number. Then, use the calculated daily demand (average plus 3 standard deviations) to calculate demand over a five-day periods. Place this recommendation just below the top/bottom analysis, again clearly identifying it. Add the label Bearing Recommended to identify the cell containing the actual value. Recommend a target inventory level needed for a five-day period based on the following; to be on the cautious side, assume each day's supply will be equal to the average daily demand for all locations combined, plus three standard deviations: Because the mean and standard deviations might not already be integers, round the daily demand up to the nearest whole number. Then, use the calculated daily demand (average plus 3 standard deviations) to calculate demand over a five-day periods. Place this recommendation just below the top/bottom analysis, again clearly identifying it. Add the label Bearing Recommended to identify the cell containing the actual value.

Answer rating: 100% (QA)

Solution Location Average Daily Demand Standard Deviation CKG 11 2 Five Day Demand 11 32 17 Bearing Recommended Inventory Level for 5Day Period 85 Ste... View the full answer