DS 412 Your new company has decided to use a periodic review system
by ella | Aug 18, 2025 | Business
| Problem 27
Your new company has decided to use a periodic review system. You have learned that average weekly demand is 54 units per week with a standard deviation of 10 units. You believe that your cycle-service level should be 94 percent. Lead time is two weeks. Initially, you believe that you should do a review every Friday.
(Round your intermediate calculations and final answers to nearest whole numbers, the tolerance is +/-1.)
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Determine the required safety stock and the target inventory level.
Safety stock =
units
TI = units
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How would this procedure change if the cycle-service level needed to be 98 percent?
safety stock becomes
, and the target inventory becomes
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What is the impact of changing the review period from every Friday to every other Friday, assuming that the cycle-service level is 93.9 percent?
Safety stock =
units
TI = units |
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