Weekly demand for a product at your retail store is normally
distributed with a mean of Z (provided
in the data set below) and a standard deviation of 80. Inventory is
continuously monitored and an order of 1,000 products is placed
each time the inventory drops to 950 units. The replenishment
lead-time is three weeks. Respond to the prompts below using the
following data set:
Weekly Demand For A Product At Your Retail Store Is Normally Distributed With A Mean Of Z Provided In The Data Set Belo 1 (112.51 KiB) Viewed 51 times
Useful Formulas:
Weekly Demand For A Product At Your Retail Store Is Normally Distributed With A Mean Of Z Provided In The Data Set Belo 2 (3.6 KiB) Viewed 51 times
Weekly Demand For A Product At Your Retail Store Is Normally Distributed With A Mean Of Z Provided In The Data Set Belo 3 (1.53 KiB) Viewed 51 times
Weekly Demand For A Product At Your Retail Store Is Normally Distributed With A Mean Of Z Provided In The Data Set Belo 4 (4.85 KiB) Viewed 51 times
1 Problem 3 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Q3(a) Inputs 295 Average demand per unit time, D = Lead time, L = SD of demand per unit time, op = Reorder Point, ROP Distribution of Demand during Replenishment Lead Time Mean demand during lead time, D₁ = SD of demand during lead time, σL = Outputs Safety inventory, ss = Cycle service level, CSL = E F G Q3(b) Inputs 295 Average demand per unit time, D = SD of demand per unit time, op = Lead time, L = Standard deviation of lead time, σL = Order quantity Q= Target cycle service level, CSL = Distribution of Demand during Replenishment Lead Time Mean demand during lead time, DL = SD of demand during lead time, σ₁ = Outputs Safety inventory, ss = H
DL = D X L, OL = VLop
CV = σιμ
D₁ = D × L; σ₁ = √Lo₂ + D² s ² X OL
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