Question: The inventory manager at a consumer goods warehouse has long implemented the EOQ-type inventory management model for its flagship product. Derived from this model, the

The inventory manager at a consumer goods warehouse has long implemented the EOQ-type inventory management model for its flagship product. Derived from this model, the product is handled with a batch of 1,500 units, a reorder point of 300 units (inventory level available) and a delivery time of 3 weeks. After observing the product demand ratio for several cycles and detecting uncertain behavior in it, especially during delivery time, the administrator concluded that it is necessary to establish a safety inventory. Based on the observations, it could be determined that the demand follows a uniform distribution between 150 and 450 units during the delivery time (demand accumulated in 3 weeks).

Based on the observations and data collected by the administrator, determine a depletion probability table for the series of safety inventories proposed for the star product:

reorder point (deterministic)inventoryreorder point (probabilistic)probability exhaustion
30060
%
300
72
%
30084
%
30096
%
300108
%
300120
%
300132
%
300144
%

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