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You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business
You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business days per year. One of your most important items experiences demand of units per day, normally distributed with a standard deviation of units per day. You experience a lead time on orders from your supplier of six days with a standard deviation of two days. The unit price, regardless of order size, is $ Your ordering cost is $ Your Inventory carrying cost is percent. You have established a service level policy of percent on this item. Use Table
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