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After an initial peak in demand, the demand for iPhone 6 stabilizes at 3500 units per week at the Apple store in Jacksonville. The standard
After an initial peak in demand, the demand for iPhone 6 stabilizes at 3500 units per week at the Apple store in Jacksonville. The standard deviation of demand is 820 units. The lead time to reorder iPhones is 4 weeks, and the P is 2 weeks. The store manager wants to ensure a service level of 99.5%. a. What is the safety stock the Apple store has to keep in order to ensure this service level? b. What is the target inventory for the iPhone? c. The store does the inventory review today. It has an on-hand inventory of 12,550 units and there are 7,800 units in the pipeline inventory. How much should they order
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