Suppose a company is using the following rule for controlling the stock of C items. Whenever the

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Suppose a company is using the following rule for controlling the stock of C items. Whenever the inventory position drops to 2 months or lower, order a 6 month supply. For each of the following items, what is the implied value of TBS? Assume Poisson demand.

a. Item 372: D = 60 units/year, L = 1.5 months

b. Item 373: D = 60 units/year, L = 3 months

c. Item 374: D = 30 units/year, L = 1.5 months lpo897

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Inventory And Production Management In Supply Chains

ISBN: 9781032179322

4th Edition

Authors: Edward A Silver, David F Pyke, Douglas J Thomas

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