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You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item: Demand =25,000 units/year Ordering cost =$12/ order Holding cost =$1/ unit / year Lead time =4 weeks Standard deviation in weekly demand =145 units What safety stock level provides a 95 percent cycle-service level ( z=1.65) ? (Please round your calculations to the nearest whole number.)
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