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

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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

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

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!