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Suppose that the daily demand for an item has mean 80 and standard deviation 30. The supply lead time has mean 3 days and standard
Suppose that the daily demand for an item has mean 80 and standard deviation 30. The supply lead time has mean 3 days and standard deviation 1 day. You are using the base-stock policy to order the item every day. Based on the target fill rate requirement, you are setting the z score to z = 1.5. Which type of inventory constitutes the largest portion of the total inventory for the item? Group of answer choices Cycle stock Pipeline stock Base stock Safety stock
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