11.7. For an SKU, the standard deviation of demand during the lead time is 200 units, the...

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11.7. For an SKU, the standard deviation of demand during the lead time is 200 units, the annual demand is 16,000 units, and the order quantity is 800 units. Management says it will tolerate only one stockout per year. What safety stock should be carried? What is the average inventory? If the lead time is 3 weeks, what is the order point?

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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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