question archive In a continuous review inventory system, the lead time for door knobs is 5 weeks
In a continuous review inventory system, the lead time for door knobs is 5 weeks
Subject:Operations ManagementPrice: Bought3
In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 99 percent. The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level? (Use Z = 2.33; round to the nearest unit)
