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An office products store carries on average 17 days of inventory of copy paper. They order a truckload from the supplier every 10 days, and
An office products store carries on average 17 days of inventory of copy paper. They order a truckload from the supplier every 10 days, and it takes 3 days from ordering to receipt. They pay the supplier only on receipt of the goods. There is no seasonality in demand for copy paper at the store, but there is random variation and demand is normally distributed.
- What is the average cycle stock, in days, held at the store?
- What is the average safety stock, in days, held at the store?
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