Assume that you are the director of the inventory management department using a periodic review system in
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Assume that you are the director of the inventory management department using a periodic review system in a hotel. Every Monday, you review the inventory and identify the needs of replenishment orders. For 1 gallon milks, it is known that lead time is 3 weeks, the demand is normally distributed with a mean of 4100 units, and the standard deviation is 100 units per week. You also know that the desired cycle-service level is 90%. Calculate the safety stock and target inventory level for 1 gallon milks.
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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