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

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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

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Introduction To Materials Management

ISBN: 9781292162355

8th Global Edition

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

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