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Anna and Joachim have been re-ordering kits to assemble nativity sets when the amount on hand is 40 kits and they routinely rurfout of kits.
Anna and Joachim have been re-ordering kits to assemble nativity sets when the amount on hand is 40 kits and they routinely rurfout of kits. Demand is constant at a rate of 81 kits per week. Lead time varies with average lead time of 9 days and a standard deviation of 1.3 days.
- at what point should they be ordering if they desire a stock at risk of 4%?
- What would be their level of safety stock with the stock at risk?
- At what point should they be ordering if they desire a stock at risk of 7.5%?
- What would be their level of safety stock with that stock, our risk of 7.5%.
- At what point should they be ordering if the time was confident and stable (no standard deviation)
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