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Motorola wants to compare the continuous and periodic review strategies for cell phones manufactured in China for the U.S. market. The U.S. market is served from a single warehouse in Memphis, Tennessee. The company provides the following information about demand:

	US Warehouse
Demand, units/day	4000
S,d units/day	5000
Lead time, days	36

If Motorola follows a continuous review policy and orders from their supplier in China in lots where Q=80,000, what level of safety inventory is required to achieve a CSL of 95%?

What level of total inventory will Motorola hold under the continuous review policy?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92695946

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