The Wonderful Hair Salon buys lots of shampoos. Wonderful follows the exponential-smoothing forecasting method, and based on their forecast calculations, annual demand is 750 units. Wonderful normally pays $3.00 per shampoo bottle when ordering from its supplier. Each order that is placed with the supplier costs $18 to process. Wonderful's holding cost for shampoos is 15% of the cost of the shampoo bottle per year.
-The lead time for KraftyCity workbenches is 3 weeks, with a standard deviation of 1.2 weeks, and the average weekly demand is 24, with a standard deviation of 8 workbenches. What should the reorder point be if KraftyCity wants to provide a 95% service level?

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The Answer of The Wonderful Hair Salon buys lots of shampoos. Wonderful follows the exponential-smoothing forecasting method, and based on their forecast calculations, annual demand is 750 units. Wonderful normally pays $3.00 per shampoo bottle when ordering from its supplier. Each order that is placed with the supplier costs $18 to process. Wonderful's holding cost for shampoos is 15% of the cost of the shampoo bottle per year.
-The lead time for KraftyCity workbenches is 3 weeks, with a standard deviation of 1.2 weeks, and the average weekly demand is 24, with a standard deviation of 8 workbenches. What should the reorder point be if KraftyCity wants to provide a 95% service level?

The Wonderful Hair Salon Buys Lots of Shampoos