Assume that management has decided to limit the number of stock-outs per year to only 1. The annual demand and order quantities of this item are 52000 units and 2600 units, respectively. The standard deviation of demand during a lead time of 1 week is 100 units. Calculate: # of orders per year, service level, SS, & OP.

Assume that management has decided to limit the number of stock-outs per year to only 1. The annual demand and order quantities of this item are 52000 units and 2600 units, respectively. The standard deviation of demand during a lead time of 1 week is 100 units. Calculate: # of orders per year, service level, SS, & OP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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