Which of the following exemplifies a change in buyers' tastes? Multiple choice question. A decrease in national income because o
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Answer:
26 packages
Explanation:
Given that:
The demand D = 186 packages in a week
Standard deviation = 13packages
The lead time L = 1.5 weeks
Order quantity Q = 750 packages
The Confidence service Level = 0.95
At the service level (SL) if we find the P(Z) of the SL using Excel, we have:
P(Z) = NORMSINV(0.95)
P(Z) = 1.64
Thus;
the safety stock = Z × SD√L
= 1.64 \times 13 (1.224745)
= 1.64\times15.92
= 26.11156
≅ 26 packages