this is the full question, question numner - 11.10

11.10. If the standard deviation is calculated from weekly demand data at 100 units, what is the equivalent sigma for a 3 -week lead time? 11.8. A company stocks an SKU with a weekly demand of 225 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800 units, what is the safety stock, the average inventory, and the order point? 11.9. A company stocks an SKU with a weekly demand of 600 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500 units, what is the safety stock, the average inventory, and the order point? 11.10. If the standard deviation is calculated from weekly demand data at 100 units, what is the equivalent sigma for a 3-week lead time? Answer. 173 units 11.11. If the safety stock for an item is 200 units and the lead time is 3 weeks, what should the safety stock become if the lead time is extended to 6 weeks? Answer. 283 units 11.12. If the weekly standard deviation is 140 units, what is it if the lead time is 3 weeks? 11.13. The safety stock on an SKU is set at 220 units. The supplier says it can reduce the lead time from 8 to 6 weeks. What should be the new safety stock? Answer. 191 units 11.14. The safety stock on an SKU is set at 500 units. The supplier says it has to increase the lead time from 4 to 5 weeks. What should be the new safety stock? 11.15. Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead time is 2 weeks. Sales history for the past 10 weeks follows. Calculate: a. Sigma for the demand history time interval. b. Sigma for the lead time interval. c. The service level. d. The safety stock required for this service level. e. The order point