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The demand for an electronic component spare part is normally distributed with an average daily demand of 500 units and a standard deviation of 50.
The demand for an electronic component spare part is normally distributed with an average daily demand of 500 units and a standard deviation of 50. The company adopts a P type or fixed time period model. The lead time for the component is 9 days and time between orders is 12 days. If a service level of 95% is desired, then calculate the company's safety stock for this component and quantity to be ordered. Assume on hand inventory to be zero.(Z=1.65)
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