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Scenario 12.2 - Hamsterdam

question 60

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Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones,on average 1500 per week with a standard deviation of 145.The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones.To ensure they never run out,they keep a safety stock of 500 phones with Proposition Joe.
-What safety stock should be held to put the expected shortage per cycle at 5 phones?

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Definitions:

Vitamin A

A fat-soluble vitamin important for normal vision, immune function, and reproduction.

Bones

The hard, dense organs that form the framework of the human body, essential for movement, protection of internal organs, and storage of minerals.

Teeth

Hard, calcified structures in the mouth used for biting and chewing food, also playing a role in speech.

Water-Soluble

Capable of dissolving in water, often referring to substances that can be easily absorbed or metabolized by the body or the environment.

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