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Management Studies

Weekly demand for jeans at a Gap store is normally distributed, with a mean of 100 and a standard deviation of 50. The supply plant takes three weeks to supply a Gap order. The store manager monitors its inventory continuously and reorders jeans when the available inventory drops below 350.

a) How much safety stock does the store carry?

b) What CSL does the store achieve?

c) If the store manager wants to target a CSL of 95 percent, how much safety inventory of jeans should the store carry?

d) What should its ROP be based on the safe inventory derived in (c)?

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HR Management, Management Studies

Category:- HR Management
Reference No.:- M92060325

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