A trading company has 2 outlets. It has data from the last 12 months of sales of its flagship product, and also with the sales data that had been forecast for each of the months. The supplier delivery time is known to be two months. If the company wants to maintain a service level (Cycle Service Level) of 97%, it determines the level of total safety inventory required if the company maintains a local safety inventory in each store. Round the value to the nearest integer.
A trading company has 2 outlets. It has data from the last 12 months of sales of its flagship product, and also with the sales data that had been forecast for each of the months. The supplier delivery time is known to be two months. If the company wants to maintain a service level (Cycle Service Level) of 97%, it determines the level of total safety inventory required if the company maintains a local safety inventory in each store. Round the value to the nearest integer.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
A trading company has 2 outlets. It has data from the last 12 months of sales of its flagship product, and also with the sales data that had been
The supplier delivery time is known to be two months.
If the company wants to maintain a service level (Cycle Service Level) of 97%, it determines the level of total safety inventory required if the company maintains a local safety inventory in each store. Round the value to the nearest integer.
Transcribed Image Text:Demand
Observed demand
pronosticated
Month
T1
T2
T1
T2
1
1054
1462
1024
1376
2
752
1148
724
1152
3
1150
1562
1186
1570
4
1198
1562
1250
1618
5
994
1396
1044
1382
6
1022
1452
964
1364
7
962
1340
946
1314
8
1170
1578
1022
1546
9
774
1180
784
1204
10
914
1294
800
1376
11
988
1400
1020
1376
12
1122
1518
1052
1588
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