Question: Weekly demand for a particular item averages 5 0 units, with a standard deviation of 8 . This item is managed with a fixed -

Weekly demand for a particular item averages 50 units, with a standard deviation of 8. This item is managed with a fixed-order-interval model. The order interval is four weeks, and this item has a certain lead time of one week. The desired service level is 95 percent. Assume that it is now time to place another order, and there are 65 units on hand.
How many units should be ordered?Formula:
Q= Expected demand during protection interval & Lead Time + safety stock on hand
Q= d (L+OI)+ safety stock on hand
=_()
d: daily demand
L: lead time
OI: Order Interval

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