Question: Using a push inventory model, a factory makes 6,000 units of a product that is shipped to two different stores that are to have an
Using a push inventory model, a factory makes 6,000 units of a product that is shipped to two different stores that are to have an in-stock level of 97.5%. Inventory and demand are shown in the table below.
| Store 1 | Store 2 | |
| Units on hand | 0 | 161 |
| Average demand | 2621 | 2952 |
| Standard deviation of demand | 102 | 155 |
1. How many units should be sent from the factory to Store 1 to meet an in-stock level of 97.5%?
- 3367 units
- 2821 units
- 3467 units
- 3597 units
- 2301 units
- 2621 units
- 3051 units
2. How many units should be sent from the factory to Store 2 to meet an in-stock level of 97.5%?
- 3395 units
- 2513 units
- 2694 units
- 2952 units
- 3256 units
- 3095 units
- 3508 units
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