Question: [ Reorder Point for Variable Demand and Constant Lead Time ] [ 2 points ] Suppose that the average demand is 1 8 units per
Reorder Point for Variable Demand and Constant Lead Time
points Suppose that the average demand is units per week with a standard deviation
of units. The lead time is constant at weeks. Determine the safety stock and reorder
point if management wants a percent cycleservice level.
Hint: choose a z score corresponding to a CSL that is the closest to ;
when safety stock is not an integer, think about whether the result should be rounded
up or rounded down. To be practical, both safety stock and reorder point need to be
integers.
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