The demand for a product is 15,600 units. the weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $.10 per unit. Find the reorder point necessary to provide a 98 percent service probability.;Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the new service probability be?
Paper#34164 | Written in 18-Jul-2015Price : $27