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how much safety stock should a CDC carry to meet a 97.5% service level? what is the average inventory for the singleserve cracker package cases?
how much safety stock should a CDC carry to meet a 97.5% service level? what is the average inventory for the singleserve cracker package cases? (order quantity, Q, from the EOQE Quetion is equal to cycle stock for ACDC) what is the reorder point? Nothing at ACDC ever quite operates on time and customers can be finicky about when and how much they order, however, over the years a rhythm has been tracked that when aggregated among all customers follows a "predictably" random normal distribution. - Average demand: 75,000 cases of crackers per year (from part A) - Standard deviation of demand: 15,000 cases of crackers per year - Average lead time: 6 days - Standard deviation of lead time: 3 days - Service level: 97,5% (ACDC believes in high levels of service and quality)
how much safety stock should a CDC carry to meet a 97.5% service level?
what is the average inventory for the singleserve cracker package cases? (order quantity, Q, from the EOQE Quetion is equal to cycle stock for ACDC)
what is the reorder point?
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