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Suppose the daily demand of a project follows a normal distribution with the mean of 30 units and the standard deviation of 5 units.
Suppose the daily demand of a project follows a normal distribution with the mean of 30 units and the standard deviation of 5 units. Lead time is 4 days. The ordering cost is $400 per order, and the inventory holding cost is $20 per unit per year. A cycle service level (probability of no stockout) of 95% is required. Using the fixed order quantity model, what is the reorder point?
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Managerial Decision Modeling Business Analytics With Spreadsheet
Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson
4th Edition
1501515101, 978-1501515101
