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Weekly demand for Hewlett Packard printers at a Sam's Club store is normally distributed with a mean of 250 and a standard deviation of 150

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Weekly demand for Hewlett Packard printers at a Sam's Club store is normally distributed with a mean of 250 and a standard deviation of 150 . The store manager continuously monitors inventory and currently orders a thousand printers each time the inventory drops to 600 printers. Hewlett Packard currently takes two weeks to fill an order. How much safety inventory does the store carry? What cycle service level does Sam's Club achieve as a result of this policy? What fill rate does the store achieve? 10 11 Inputs 12 Average demand per unit time, D= 13 Lead time, L= 14 SD of demand per unit time, D= 15 Order quantity, Q= 16 Reorder Point ROP 17 18 Distribution of demand during replenishment lead time 19 Mean demand during lead time, DL= 20 SD of demand during lead time, L= 21 22 23 Outputs 23 Safety Inventory, ss = 24 Cycle Service Level, CSL= 25 Expected shortage per replenishment cycle, ESC = 26 Fill Rate, fr= 27 28 29

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