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Consider a periodic review system, where orders are placed every 1 9 days. The firm strives to provide a 9 4 . 8 4 %
Consider a periodic review system, where orders are placed every days.
The firm strives to provide a cycle service level. Demand averages
units per day, and the standard deviation of demand per day is
units. Lead time is days round Zvalues, standard deviations to two
decimal places
a How many units of safety stock should be held? units round your
response to the nearest integer
b What should the target inventory level orderupto level be
units round your response to the nearest integer
c Suppose that it is time to review the item. There are units
in inventory, and there is an outstanding backorder for units. An order
for units is on the way. How many units should be ordered now?
units round your response to the nearest integer
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