Weekly demand for gaming consoles at a bestbuy store is, Ask an Expert

Management Studies

Weekly demand for gaming consoles at a BestBuy store is normally distributed with a mean of 1,000 and a standard deviation of 400. The replenishment lead time from the supplier is 4 weeks. BestBuy is targeting a SL of 95% and uses a periodic review policy under which it reorders consoles every 8 weeks.

(a) What is the average order size?

(b) How much safety inventory should they carry? What should their order-up-to level be?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92558422

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