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Suppose that you are a procurement specialist at XYZ corporation. One of your responsibilities is to make sure that you have enough parts on hand

Suppose that you are a procurement specialist at XYZ corporation. One of your responsibilities is to make sure that you have enough parts on hand for your manufacturing department to process.

Your manager has indicated that "we should be 95% confident that we will have enough inventory for the manufacturing department." Also, you know from experience that once you place an order on the supplier, the "lead time" takes 10 weeks for the order to arrive.

Using the daily demand data below (and assuming calendar days where 1 week = 7 days), determine how many extra units of the part you should carry (i.e., safety stock).

Round to the nearest whole number (e.g., enter 54.5 as 55).

Day Demand
1 92
2 89
3 126
4 188
5 149
6 132
7 160
8 90
9 146
10 89
11 201
12 105
13 104
14 85
15 154
16 105
17 190
18 86
19 136
20 145
21 121
22 126
23 163
24 116
25

190

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