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Estimating Safety Inventory ( Continuous Review Policy ). Given: d = 2,500/week; d = 500; L = 2 weeks; Q = 10,000; Service Level

Estimating Safety Inventory (Continuous Review Policy). Given: d = 2,500/week; σd= 500; L = 2 weeks; Q = 10,000; Service Level = 0.95 (i.e. Z=1.645). What is expected demand during lead time? σL=? Safety stock=? Reorder point=? 

 

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