Question

Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 12 ​weeks, and the lead time for receiving the materials ordered from its wholesaler is 4 weeks. Weekly demand is normally​ distributed, with a mean of 125 units and a standard deviation of 25 units. Refer to the standard normal table LOADING... for​ z-values. a. What is the average and the standard deviation of demand during the protection​ interval? The average demand during the protection interval is nothing units. ​(Enter your response as an​ integer.)

Answer 1

Periodic review system also called fixed interval reorder system has four original economic order quantity assumptions: -

• There are no restrictions on lot size.
• ordering cost and carrying cost
• demand should be independent
• The lead time is constant.