The Hastings Company is a nation-wide wholesaler for small electronic devices.One of its most popular items is a new GPS unit called the WAMI-1000.Hastings has gathered the following information,and has asked you to develop a continuous review inventory control system for this item:
Order quantity for each order placed with manufacturer = 10,000 units
Average demand = 1,000 units/week
Standard deviation of weekly demand = 200 units
Average lead time = 5 weeks
Standard deviation of lead time: 1.5 weeks
Cycle-service level = 90% (z for 90% = 1.28)a.What is the standard deviation of demand during lead time?
b.What is the safety stock level that should be carried for the WAMI-1000?
c.What is the reorder point for the WAMI-1000?
d.Summarize the actions Hastings should take using your new inventory system.
e.If Hastings decides to increase its cycle-service level to from 90% to 95% ( z for 95% = 1.65),how does this change the actions that should take?

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The Answer of The Hastings Company is a nation-wide wholesaler for small electronic devices.One of its most popular items is a new GPS unit called the WAMI-1000.Hastings has gathered the following information,and has asked you to develop a continuous review inventory control system for this item:
Order quantity for each order placed with manufacturer = 10,000 units
Average demand = 1,000 units/week
Standard deviation of weekly demand = 200 units
Average lead time = 5 weeks
Standard deviation of lead time: 1.5 weeks
Cycle-service level = 90% (z for 90% = 1.28)a.What is the standard deviation of demand during lead time?
b.What is the safety stock level that should be carried for the WAMI-1000?
c.What is the reorder point for the WAMI-1000?
d.Summarize the actions Hastings should take using your new inventory system.
e.If Hastings decides to increase its cycle-service level to from 90% to 95% ( z for 95% = 1.65),how does this change the actions that should take?

The Hastings Company Is a Nation-Wide Wholesaler for Small Electronic