Question: Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of 5 units. The holding coat is $10
Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of 5 units. The holding coat is $10 per unit per week and a 0.99 in-stock probability is desired. What will be the effect on Store A's average on-hand inventory if lead time increases from 2 weeks to 5 weeks?
a. it will decrease
b. it will double
c. it will remain the sane
d. it will increase
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