Reconsider the Best Buy store. The store manager has decided to follow a periodic review policy to manage inventory of cell phones. She plans to order every threeweeks. Given a desired CSL of 95 percent, how much safetyinventory should the store carry? What should its OUL be?

Assume that the Best Buy store in Exercise 3 has a policy ofordering cell phones from Motorola in lots of 500. Weeklydemand for Motorola cell phones at the store is normally distributed, with a mean of 300 and a standard deviation of 150.

Motorola takes two weeks to supply an order. If the storemanager is using a continuous review policy and targeting afill rate of 98 percent, what safety inventory should the storecarry? What should its ROP be?

Answer rating: 100% (QA)

The Cycle Service Level CSL is the probability of no stockouts between two suc... View the full answer