Question
Q. Weekly demand for HP printers at Sam's Club distribution center (DC) is normally distributed, with a mean of 300 and a standard deviation of
Q. Weekly demand for HP printers at Sam's Club distribution center (DC) is normally distributed, with a mean of 300 and a standard deviation of 200. The DC manager continuously monitors its printer inventory and currently orders 2,000 printers each time the inventory drops to 1,600 printers. HP currently takes exactly four weeks to fill an order. a. How much safety inventory (SS) of HP printers does the store carry? b. What cycle service level (CSL) does Sam's Club achieve as a result of the current policy? c. Suppose Sam's Club desires to establish a 99% CSL. What should be its reorder point (ROP)?
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