Question: Use the data below to answer the question below. Average daily demand 3 2 5 cases per day Standard deviation of daily demand 9 5
Use the data below to answer the question below.
Average daily demand cases per day
Standard deviation of daily demand cases per day
Average Lead Time days
Inventory holding cost of the item's value per year
Purchase Price $ per case
Order Cost $ per order
Stockout Cost $ per case
Desired Service Level
Assume the company operates days per year
You look back at historical data and find that lead time is not constant but is variable with an average of days. What should the reorder point be set at to meet the desired service level if the standard deviation of lead time was found to be days and the zscore for a service level of is
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