Answer: 690
Explanation:
demand per week, d | 1000 | |
Lead time, LT | 4 | |
standard deviation of weekly demand, Sd | 150 | |
standard deviation of lead time, SLT | 0 | |
Standard deviation of demand lead time, SdLT | SQRT((LT*(Sd)^2) + (d*SLT)^2)) | 300 |
Service level desired | 99% | |
Z value at service level, z | from table | 2.3 |
Safety stock, SS | z*SdLT | 690 |
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