Demand for electric motors is normally distributed with a, Ask an Expert

Management Studies

A fan manufacturer uses a periodic review inventory system to purchase electric motors. The review period is 2 weeks and the lead time is 1 week. Demand for electric motors is normally distributed with a mean of 500 per week and a standard deviation of 80 per week. The target inventory is 1762 motors.

a) What is the safety stock?

b) What service level is achieved?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M980861

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