4.4 Daily demand of car batteries in Best Auto Mart (BAM) is normally distributed with a mean...
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4.4 Daily demand of car batteries in Best Auto Mart (BAM) is normally distributed with a mean of 15 and a standard deviation of 10. BAM opens 365 days a year. Its replenishment lead time follows a normal distribution with a mean of 5 days and a standard deviation of 2days. The inventory holding cost at BAM is $17 per battery per year. The xed ordering cost is $315 per order. BAM targets a cycle service level of 95%. BAM uses a periodic review policy. How often should BAM review its inventory? What OUL should be used?
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Manufacturing At Warp Speed Optimizing Supply Chain Financial Performance
ISBN: 9781574442939
1st Edition
Authors: Eli Schragenheim, H William Dettmer
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