How Much Safety Stock Should an Organization Hold If It

question 87

Short Answer

How much safety stock should an organization hold if it wants to provide a 95% order-cycle service level for an item whose annual demand is 12000 units with standard deviation of 300 units per year and 30 units during lead time. The organization uses 1.96 standard deviations for this purpose.

---

Definitions:

Cost Of Goods Manufactured

The total expense incurred to produce goods within a specified period, including materials, labor, and overhead.