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You are trying to calculate the amount of safety stock inventory that a company needs to hold onto. One of the key inputs is the
You are trying to calculate the amount of safety stock inventory that a company needs to hold onto. One of the key inputs is the service level, which is dened as the probability that the company will be in-stock on the item. For example, a 95% service level means that the company will be in-stock on that item 95% of the time. You'd like to do an analysis to gure out how the service level (cell D7) affects the amount of safety stock (cell D8). You've begun to set up a data table to try out a range of service levels from 90% to 96%: m mean demand 328.06 per week 90.0% stdev of demand 67.65 per week 90.5% review period 1 week 91.0% lead time 10 days 91.5% service level 95.00% 92.0% safety stock 173.41 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% Click here i, if you can't see the image above. Use this information to answer questions 15-17
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