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A business operating under demand uncertainty forecasted the mean annual demand and standard deviation as 1200 units and

Posted: Sun May 08, 2022 8:07 pm
by answerhappygod
A business operating under demand uncertainty forecasted the
mean annual demand and standard deviation as 1200 units and 200
units, respectively. The company decided to utilize a safety factor
level of 1.40. The lead-time from the supplier is set at 60 days.
As such, the optimum safety stock under the 360 working days
assumption is:
Show the mathematical algebra in achieving the correct final
result to get credit