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An item is used in an assembly operation at an average rate of 16 per day and a standard deviation of 20 per week (7
An item is used in an assembly operation at an average rate of 16 per day and a standard deviation of 20 per week (7 days per week, 50 weeks per year). Assume normally distributed (bell curve) usage. The lead time is 2 days. A Periodic Review policy is followed, whereby the inventory level is reviewed every Monday. If the service level is approximately 75% the Target Inventory Level is approximately O 260 O 300 O 100 O 160
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