Question
I am having issues calculating for the safety stock Blue & White Coffee (B&W) orders their organic coffee filters from an international supplier, which results
I am having issues calculating for the safety stock
Blue & White Coffee (B&W) orders their organic coffee filters from an international supplier, which results in longer lead times to replenish inventories. B&W uses 95 filters a day with a standard deviation in daily demand of 7 per day. Considering how important it is to have these organic coffee filters available when needed, they have set their service level at 99% (z = 2.33) in hopes of avoiding stockouts. It takes 14 days to receive a shipment and the standard deviation of the shipping time is 3 days. What is their reorder point?
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