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Given the Following Information

question 85

Essay

Given the following information:
Order quantity = 40
Expected demand during lead time = 20 units
σd LT = 10
desired annual service level = .99
Find:
(i)the expected number of units short per cycle
(ii)the required ROP


Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.

Inelastic Demand

A situation where the demand for a good or service is relatively unresponsive to changes in price.

Total Revenue

The total income received by a firm from sales of its products or services.

Increase

A rise or growth in quantity, size, number, or some other measure.

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