Question
Problem 7-22 (Algo) Dreyfus Company has a policy of counting on-hand inventory of one of its products every 60 days. When a replenishment order for
Problem 7-22 (Algo)
Dreyfus Company has a policy of counting on-hand inventory of one of its products every 60 days. When a replenishment order for the product is placed with the supplier, lead time is 6 days. Demand for the product averages 4 units per day with a standard deviation of 1.4 units. It has just been determined that the company currently has 53 units on hand. Use Table 7-2.
How many units should the company order if it strives to maintain a 95% service level on this item?
Note: Do not round intermediate calculations. Round up your answer to the next whole number.
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Project Management A Managerial Approach
Authors: Jack R. Meredith, Samuel J. Mantel Jr.
8th edition
470533021, 978-0470533024
