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Your firm is planning to introduce a new product line. Your task is to determine the inventory implications of the new product. The typical product
Your firm is planning to introduce a new product line. Your task is to determine the inventory implications of the new product. The typical product will ship an average of units per day from the firms central DC Historical sales patterns indicate that the standard deviation of daily sales should be approximately The typical performance cycle for comparable products has been a mean of seven days and a standard deviation of A Assuming a replenishment quantity from the plant of units, what are the safety stock and resulting average inventory for a percent case fill rate? B What are the inventory implications safety stock and average inventory of increasing the case fill rate objective to percent? C What would be the inventory implications for daily replenishment with a percent fill rate objective, assuming that the same level of demand and performance cycle uncertainty is maintained?
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