11.20. A firm orders a number of items from a regional warehouse every 2 weeks. Delivery takes...
Question:
11.20. 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?
Answer. Target level = 1000 units Order quantity = 400 units
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction To Materials Management
ISBN: 9781292162355
8th Global Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive
Question Posted: