Question
The company is using a lot size of 700 units per order. Calculate the safety stock required for a stockout probability of 0.05. The expected
The company is using a lot size of 700 units per order. Calculate the safety stock required for a stockout probability of 0.05. The expected annual demand is 123,670 units. The standard deviation for a week is 345 units. The ordering cost is $200 and the carrying cost is $3.00 per unit per year. In addition, the lead time is 3 weeks and there are 52 weeks per year.
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
