Now assume that the company's demand averages 100 units per month but is no longer constant. The monthly demand is norma
Posted: Fri May 20, 2022 7:52 am
company's demand averages 100 units per month but is no longer constant. The monthly demand is normally distributed with mean 100. The company has been using a reorder point that provides a service level of 90%. Suppose management wants to provide a better service level and is thinking of doubling the amount of safety stock. 226 What would be the service level if the safety stock is doubled? a. 98.1% b. 99.9% c. 95.5% d. 99.5% e. 92.8%
Now assume that the