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TATA trucks and its subsidiaries making 432,150 units per year with a daily standard deviation of 153 units. Making cost and shipping cost from Germany

TATA trucks and its subsidiaries making 432,150 units per year with a daily standard deviation of 153 units. Making cost and shipping cost from Germany is $1,900, with lead time from order to receipt is 19 days with standard deviation of 6 days. If the annual inventory cost is $1.89 per unit.


What is the reorder point in order to provide a 98% service level (Z score 2.33). (Round to the nearest unit)?

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We can find the reorder point ROP using the following formula ROP Daily Demand Lead Time Safety Stoc... blur-text-image

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