Question
You have to select a transportation carrier to use for replenishing your inventory.Demand for the item is distributed Normally with a mean of 500 units
You have to select a transportation carrier to use for replenishing your inventory.Demand for the item is distributed Normally with a mean of 500 units and a standard deviation of 100 units per week.The cost of the item to include delivery is $450.You want a CSL of 95%.
- Option 1: Delivery leadtime mean=4 weeks, StdDev = 1 week
- Option 2: Delivery leadtime mean=4 weeks, StdDev = 0.5 week
- Option 3: Delivery leadtime mean=3 weeks, StdDev = 1 week
Suppose you decide to use Option 1?
What is the average safety stock in items? Enter your answer rounded UP to the nearest integer.
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
