For a Continuous Review Policy, If the Standard Deviation of Replenishment

question 38

Short Answer

For a continuous review policy, if the standard deviation of replenishment lead time is 171.58 units and 266 units of safety stock are held, what is the implied order-cycle service level?

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Definitions:

Facilitating Function

Functions that assist in the smooth performance of the marketing process, such as financing, storing, and transporting.

Transactional Function

Activities involved in transferring the ownership of goods from seller to buyer, including negotiation, sales, and contract enforcement.

Marketing Channel

A set of intermediaries or pathways through which goods and services pass before reaching the end consumer.

Resale

The act of selling a product or service again, often after it has been bought from the original seller or manufacturer.