Question
Use the following to answer the next 3 questions. A manager is reordering lubricant when the amount on-hand reaches 422 pounds. Average daily usage is
Use the following to answer the next 3 questions.
A manager is reordering lubricant when the amount on-hand reaches 422 pounds. Average daily usage is 63 pounds with standard deviation = 13.41 pounds. Lead-time is six days.
What is the safety stock?
What is the probability of stockout during lead time?
Suppose the order quantity is Q=1000 units. If management wants a 99% customer service level (fill rate), then the reoder point should be ?
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Supply Chain Logistics Management
Authors: Donald Bowersox, David Closs, M. Bixby Cooper
4th edition
78024056, 978-0078024054
