A company stocks an SKU with a weekly demand of 500 units and a lead time of

Question:

A company stocks an SKU with a weekly demand of 500 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500 units, what is the average inventory and the order point? LO.1

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: 9780132337618

6th Edition

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

Question Posted: