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The semiconductor supplier MircoStar is producing a one-month supply of its best-selling computer processor whenever the inventory position drops to 500,000 units. The batch of
The semiconductor supplier MircoStar is producing a one-month supply of its best-selling computer processor whenever the inventory position drops to 500,000 units. The batch of computer processors is manufactured within a week and the demand averages around 400,000 units a week. The standard deviation of the demand within that week is estimated to be about 125,000 units. What should the reorder level for MicroStar be to realise a 95% customer service level?
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