- Problem 3 Weekly Demand For A Product At Your Retail Store Is Normally Distributed With A Mean Of Z Provided In The Dat 1 (172.13 KiB) Viewed 44 times
Problem 3 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: Problem Set 3-Q3 Data Set (XLXS) • How much safety inventory does your store carry? What is the CSL? . Assume that the supply lead-time from the supplier is normally distributed with a mean of 3 weeks and a standard deviation of 2 weeks. How much safety inventory should your store carry if it wants to provide a CSL of 97 percent? Formulas Work through each problem during the week and show your work. Solutions should have formulas clearly typed in the cells to show how you came up 6 1 Problem Sel 3-Question 3 03161CILISIER 20 Inputs Average demand per unit time, D Lead time. E SD of demand per unit time, oo Reorder Point ROP Outputs Safety inventory, 55. Cycle service level, CSL 287 Distribution of Demand during Replenishment Lead Time Mean demand during lead time, D SO of demand during lead time, o 0316) Inputs Average demand per unit time, D= SD of demand per unit time, op Lead time, Standard deviation of lead time, o Order quantity U Target cucle service level. CSL= Outputs Safety inventory.ss= 28.7 Distribution of Demand during Replenishment Lead Time Mean demand during lead time, D₁ = SD of demand during lead time.o