Answer:
Step-by-step explanation:
If all orders are backlogged and the cost of lost customer goodwill from carrying a single chair on backorder is $20, what order-up-to (base stock) level should CITW use?
Company has mean demand = 1000
Standard deviation = 200 chairs
95% service level, Z=1.64 ⇒ 1000 - 1.64 * 200 = 1000 – 328 =672 chairs.
The order up to base model is 672 chairs.
I think it would be 20!!
Hope it helps!
Answer:
663
Step-by-step explanation:
-337=x-1000
-x-337=-1000
-x=-1000+337
-x=-663
÷
663