A company stocks an SKU with a weekly demand of 90 units and a lead time of 4 ...
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A company stocks an SKU with a weekly demand of 90 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 20 and the order quantity is 450 units, what is the average inventory and the order point?
Calculate:
b. Service level. Provide your answer with one decimal (percentage).
Your answer: The service level is %.
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