Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones, on average 1500 per week with a standard deviation of 145. The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones. To ensure they never run out, they keep a safety stock of 500 phones with Proposition Joe.
-What safety stock should be held to put the fill rate at 0.99?
A) 251 phones
B) 145 phones
C) 0 phones
D) 100 phones

Question

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The Answer of Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones, on average 1500 per week with a standard deviation of 145. The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones. To ensure they never run out, they keep a safety stock of 500 phones with Proposition Joe.
-What safety stock should be held to put the fill rate at 0.99?
A) 251 phones
B) 145 phones
C) 0 phones
D) 100 phones