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For a particular product, company A has a 5 day lead time and company B has a 3 day leadtime. Both use the order
For a particular product, company A has a 5 day lead time and company B has a 3 day leadtime. Both use the order up to model to decide order quantities for replenishments, which they both do on a daily basis. Company A's demand for the product is Poisson distributed with a mean of 4.5 units per day and company B's demand is also Poisson distribution with a mean of 4.5 units per day. Company A targets a 99.9% in-stock probability whereas company B targets a 97.00% in-stock probability. Assuming no delays, which company receives more quantities in each of its shipments on average? Choose the best answer.
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