Question
A firm has determined that its optimal EOQ ordering quantity is 1,250 units for a certain product. Average daily demand is 90 units with a
A firm has determined that its optimal EOQ ordering quantity is 1,250 units for a certain product. Average daily demand is 90 units with a standard deviation of 8 units. Order lead time is 7 days. To maintain a 95% service level, what should the target inventory level be?
a. Target inventory level cannot be determined from the information given
b. 1,940
c. 1,250
d. More than 2,000
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Essentials Of Statistics For The Behavioral Sciences
Authors: Frederick J Gravetter, Larry B. Wallnau
8th Edition
1133956572, 978-1133956570
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