Demand 65000 units over 250 annual working daysunit cost, Ask an Expert

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Demand: 65,000 units over 250 annual working days

unit cost: $150

standard deviation of daily demand is 35 units

lot sizes are 2,000 and incurs a fixed order cost of $4,000 each time an order is place an order

replenishment order is placed when the inventory position drops below 2,250 units

The time required from placing an order until the product is in stock at the distribution center and ready for sale, averages six days with a standard deviation of three days.

Question:

Given their current level of safety stock, what service level are they operating at present?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91414552

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