question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes an
d a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)?
2 answers:
Answer:
Check the explanation
Explanation:
Safety Stock Value:
Safety stock is that degree of inventory which the association needs to keep up unfailingly. In the event that the organization's stock is beneath the safety stock level, at that point it will be an explanation behind stock out. Think about the accompanying data:
Kindly check the attached image below to see the step by step explanation to the question above.
You might be interested in