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.

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Definitions:

Mental Ability

The capacity to perform cognitive tasks, understand complex ideas, and adapt effectively to the environment through reasoning and learning.

Vocations

Occupations to which a person is specially drawn or for which they are suited, trained, or qualified.

Learning Disabilities

Neurodevelopmental disorders that affect the brain's ability to receive, process, store, respond to, and communicate information.

Learning Disability

A neurological disorder that affects one or more of the basic processes involved in understanding or in using spoken or written language.