We should set the reorder point R for an item, whose demand during lead time is uncertain.
Question:
We should set the reorder point R for an item, whose demand during lead time is uncertain. We have a very rough model of uncertainty - the lead time demand is uniformly distributed between 5000 and 20000 pieces. Set the reorder point in such a way that the service level is 95%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Quantitative Methods An Introduction For Business Management
ISBN: 1579
1st Edition
Authors: Paolo Brandimarte
Question Posted: