Question: Zolis department store would like to develop an inventory ordering policy of a 98% probability of not stocking out. To illustrate your recommended procedure, use

Zolis department store would like to develop an

Zolis department store would like to develop an inventory ordering policy of a 98% probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 6000 per year. The store is open 300 days per year. Every two weeks (14 days) Inventory is counted and a new order is placed. It takes 7 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order? Average daily demand Standard deviation of demand over the review period and lead time Number of standard deviations for a specified service probability Number of sheets that should be ordered

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