Demand during lead time for hp printers at a sams club, Operation Management

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Demand during lead time for hp printers at a sams club

Demand during lead time for HP printers at a Sam's Club store is normally distributed, with a mean of 500 and a standard deviation of 150. The store manager continuously monitors inventory and orders 1,000 printers when the inventory drops to 800 printers.

a) How much safety inventory does the store carry?

b) What services level does Sam's Club achieve as a result of this policy?

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Operation Management: Demand during lead time for hp printers at a sams club

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