Consider a continuous review inventory system. Demand is normally distributed with an average of 28,000 per month and a monthly standard deviation of 4900 units. Lead time is 3 weeks (assume four weeks per month) (round Z-values, standard deviations to two decimal places).If the firm desires a(n) 90% cycle service level, it should hold enter your response here units of safety stock (round your response to the nearest integer). Consider a continuous review inventory system. Demand is normally distributed with an average of 28,000 per month and a monthly standard deviationof 4900 units. Lead time is 3 weeks (assume four weeks per month) (round Z-values, standard deviations to two decimal places).If the firm desires a(n) 90% cycle service level, it should holdunits of safety stock (round your response to the nearest integer).

Monthly Demand (d) = 28,000 units per monthStandard deviation of demand (σd) = 4900 unitsLead time…

Answered: Consider a continuous review inventory…

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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Consider a continuous review inventory system. Demand is normally distributed with an average of 28,000 per month and a monthly standard deviation of 4900 units. Lead time is 3 weeks (assume four weeks per month) (round Z-values, standard deviations to two decimal places). If the firm desires a(n) 90% cycle service level, it should hold enter your response here units of safety stock (round your response to the nearest integer).

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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