Question: The Office Supply Shop estimates that the average demand for a popular ball-point pen is 12,228 pens per week with a standard deviation of
The Office Supply Shop estimates that the average demand for a popular ball-point pen is 12,228 pens per week with a standard deviation of 2,172 pens. The average lead time from the distributor is 6 weeks, with a standard deviation of 2 weeks. (Note that both demand and lead time are variable, i.e. not constant.) If management wants a 98 percent cycle- service level, what should the reorder point be? (Round your answer to the nearest whole number.)
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The reorder point formula is used to determine at what inventory level a new order should be placed to replenish inventory before it runs out This is ... View full answer
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