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Course 5860
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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:
a. Number of orders per year. Provide your answer with one decimal number.
Your answer: Number of orders per year is .
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 %.
Use the values from the previous problem.
(lead time = 1 period)
Calculate (c) order point for an 98% service level. Provide your answer with two decimal numbers!
Your answer: Order point is .
Use the values from the previous problem.
(lead time = 1 period)
b) Calculate the safety stock for an 98% service level. Provide your answer with two decimal numbers!
Your answer: The safety stock for 98% service level is .
Use the values from the previous problem.
(lead time = 1 period)
Calculate (a) the safety stock for an 50% service level