Q7. If a 90% service level is expected, what level of safety stock should be held for the demand pattern shown below?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Q7. If a 90% service level is expected, what level of safety stock should be held for
the demand pattern shown below?
Demand
Date
Actual
Forecast
Dec-00
104
100
Jan-01
96
100
Feb-01
102
100
Mar-01
93
100
Apr-01
Мay-01
92
100
103
100
Jun-01
91
100
Jul-01
96
100
Aug-01
Sep-01
Oct-01
95
100
94
100
96
100
101
102
Nov-01
100
Dec-01
100
Transcribed Image Text:Q7. If a 90% service level is expected, what level of safety stock should be held for the demand pattern shown below? Demand Date Actual Forecast Dec-00 104 100 Jan-01 96 100 Feb-01 102 100 Mar-01 93 100 Apr-01 Мay-01 92 100 103 100 Jun-01 91 100 Jul-01 96 100 Aug-01 Sep-01 Oct-01 95 100 94 100 96 100 101 102 Nov-01 100 Dec-01 100
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