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:
c. Management decides they want to have service level of 95%. How much safety stock is needed? Provide your answer as a whole number.
Your answer: The safety stock is units.
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