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Considering the electronics firm in question 3 (above), analysis shows that the demand for their jump-drive PCBAs during supplier lead time averages 50 units (normally
Considering the electronics firm in question 3 (above), analysis shows that the demand for their jump-drive PCBAs during supplier lead time averages 50 units (normally distributed), with a measured standard deviation of 5 jump-drive PCBAs. Management wants to sustain a 97 % service level to their customers.
- What value of Z would you apply? (See attached table for Z-scores according to the standard/published normal curve areas).
- How many jump-drive PCBAs should be carried as safety stock?
- What is the appropriate reorder point?
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