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Weekly demand for handbags at Pool-Pool, a Mexican department store chain, is normally distributed with a mean of 3,000 and a standard deviation of 900.
Weekly demand for handbags at Pool-Pool, a Mexican department store chain, is normally distributed with a mean of 3,000 and a standard deviation of 900. The replenishment lead time from the supplier is 4 weeks. Pool-Pool uses a periodic review policy under which it reorders handbags every 10 weeks. It currently uses an order-up-to level of 50,000. What is the average order size? How much safety inventory of handbags does Pool-Pool carry? What CSL does it achieve? What order up to level should it use if it wants a CSL of 90%?
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