GG finds that the demand is really uncertain. The typical leadtime for supply is 9 weeks....
GG finds that the demand is really uncertain. The typical leadtime for supply is 9 weeks. The standard deviation of demand during the leadtime is 120. If GG wants to provide 95% cycle service level, what should be the safety stock and reorder level? Show calculations to get credit.
Homework Answers
For 95% service level, z=1.645
LT=9
=120
safety stock = (z**LT)0.5
safety stock = (1.645*120*9)0.5
Safety Stock =42.15
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