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Author Question: A product has variable demand and constant lead time. Currently this product is managed by a ... (Read 68 times)

waynest

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A product has variable demand and constant lead time. Currently this product is managed by a fixed-period inventory system, for which the review period is one week. Lead time is four weeks. Annually about 5,200 units of this product are sold. The current target inventory is 500 units. Today is review day; 75 units are on the shelves, and orders placed at previous reviews in the amount of 110, 60, and 30 have not yet been received. There are no backorders.

a. How much is the firm allowing for safety stock in this case?
b. What should be the order amount this week?


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Marked as best answer by waynest on Dec 3, 2019

yifu223

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waynest

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Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)


jomama

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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