How much safety stock should an organization hold if it wants to provide a 95% order-cycle service level for an item whose annual demand is 12000 units with standard deviation of 300 units per year and 30 units during lead time. The organization uses 1.96 standard deviations for this purpose.
Correct Answer:
Verified
Q120: Tom's tire shop annual demand is 1,460
Q121: What is ABC Widget Company's inventory turns
Q122: The inventory method that places a maximum
Q123: Consider a periodic review system with a
Q124: What is the total annual inventory cost
Q126: For a continuous review policy, if the
Q127: What is the maximum inventory of a
Q128: The reorder point for a product that
Q129: What is the basic EOQ for a
Q130: Troy Enterprises uses a continuous review inventory
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents