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Hertz's operation uses large quantities of prepaid cell phones, on average 500 per week with a standard deviation of 45. The lead time for their
Hertz's operation uses large quantities of prepaid cell phones, on average 500 per week with a standard deviation of 45. The lead time for their own brand of prepaid cell phones is two weeks and they have a lot size of 125 phones. Suppose Hertz sets its reorder point at 1100 phones. What is its average cell phone inventory? show your work on the excel file. 87.5 phones 105 phones 162.5 phones 257.5 phones = Inputs Average demand per unit time, D Lead time, L = SD of demand per unit time, op = Order quantity, Q= Reorder point = 500 2 45 125 1,100 Distribution of Demand during Replenishment Lead Time Mean demand during lead time DL = SD of demand during lead time oL = = Safety Inventory Average Inventory for cell phones
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