Question: The planner at ABC Electronics is trying to calculate the safety stock and order point for the 50 inch plasma TV it stocks. After researching

  1. The planner at ABC Electronics is trying to calculate the safety stock and order point for the 50 inch plasma TV it stocks. After researching past sales, the planner has determined that weekly sales have been averaging 125 TVs a week with a standard deviation of 47.47 units. The lead time from the supplier is currently three weeks. Management has determined that the customer service level should be set at 98% (2.05 safety factor). The unit cost is $435.00. Round off all calculations.

  1. How much safety inventory should ABC Electronics plan for on its TVs?

What would be the order point?

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