For an SKU, the standard deviation of demand during the lead time is 150 units, the annual
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For an SKU, the standard deviation of demand during the lead time is 150 units, the annual demand is 10,000 units, and the order quantity is 750 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 2 weeks, what is the order point?
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Introduction To Materials Management
ISBN: 9780132337618
6th Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive
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