A firm orders a number of items from a regional warehouse every 2 weeks. Delivery takes 1

Question:

A firm orders a number of items from a regional warehouse every 2 weeks. Delivery takes 1 week. Average demand is 200 units per week, and safety stock is held at 2 weeks’ supply.

a. Calculate the target level.

b. If 600 units are on hand, how many should be ordered?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

Question Posted: