A company advertises a 95% cycle-service level for all stock items. Stock is replenished from a single
Question:
A company advertises a 95% cycle-service level for all stock items. Stock is replenished from a single supplier who guarantees a lead time of 4 weeks. What reorder level should the company adopt for an item that has a normally distributed demand with mean 1000 units a week and standard deviation of 100 units? What is the reorder level for a 98% cycle-service level?
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Step by Step Answer:
To calculate the reorder level for a given cycleservice level we can use the following formula Reord...View the full answer
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Related Book For 
Logistics: An Introduction To Supply Chain Management
ISBN: 9781138321359
1st Edition
Authors: Donald Waters
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