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The average weekly demand for a piece of respiratory equipment was found to be 25 units with a lead time of 3 weeks. The standard
The average weekly demand for a piece of respiratory equipment was found to be 25 units with a lead time of 3 weeks. The standard deviation of lead time demand is known to be 10 units. The company plans to provide a service level that is 47.7% more than the mean lead time demand. Both demand and lead time follow a normal distribution. The company determined that an order of 250 units is the optimal order quantity for the item.
- Identify the ordering policy for the item.
- If the company decides not to eep any safety stocks, what service level can it achieve?
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