Question: Service measure, TBS for each case (a, b and c) ?? Suppose a company is using the following rule for controlling the stock of C

Service measure, TBS for each case (a, b and c)

Service measure, TBS for each case (a, b and c) ??

Suppose a company is using the following rule for controlling the stock of C items. When- ever the inventory position drops to 2 months or lower, order a 6 month supply. For each of the following items, what is the implied value of TBS? Assume Poisson demand. a. Item 372: D= 60 units/year, L = 1.5 months b. Item 373: D= 60 units/year, L = 3 months c. Item 374: D= 30 units/year, L = 1.5 months

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