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An electronics superstore is carrying a 60 LEDTV for the upcoming Christmas holiday sales. The optimal service level is 80%. The period of sales is
An electronics superstore is carrying a 60 LEDTV for the upcoming Christmas holiday sales. The optimal service level is 80%. The period of sales is normally distributed with an average 8 weeks, and standard deviation of 1.6 weeks. Demand per week is fixed and is 25 units. One of the following formulas may be useful. Sigma(LTD) = SQRT(L)*Sigma(R). Sigma(LTD) = R*Sigma(L).
3. How many units should we order to retain the optimal service level (roundup)?
The potential answers are:
A: 100
B: 103
C: 234
D: 279
E: 110
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