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Scenario 9.12 Demand = 100,000 Units/year

question 81

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Scenario 9.12
Demand = 100,000 units/year
Number of days per year = 250 weeks
Standard deviation of weekly demand = 50 units
Average lead time = 5 days
Standard deviation of lead time: 2 days
Cycle-service level = 99%
A continuous review system is used to control inventory.
-Use the information in Scenario 9.12. If the firm decides to reduce its cycle-service level to 95%, what is the new reorder point if all other parameters remain the same for this product?

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Definitions:

Hamstring Strain

An injury to one of the three hamstring muscles at the back of the thigh, often caused by overstretching.

Sore Muscles

Discomfort or pain in muscles after unusual or vigorous physical activity, often due to microtears in muscle fibers.

Stiff Muscles

A condition where muscles feel tight and restricted in movement, often resulting from exercise, injury, or stress.

High Intensity

Referring to activities or exercises that require a large amount of effort and result in rapid heart rate and increased respiration.

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