Values I have:
- Annual Demans: 29,760
- Weekly demand: 572 units
- 12.3 Standard Deviation
- Holding: .15
What I need to figure out:
Thesupplier has a lead-time of 2 weeks. The company would like its Cycle Service Level (CSL) to be 0.90.
- Determine the necessary safety inventory ( safety stock) level for a continuous replenishment policy.
What is the Reorder point (ROP)?
What is the fill rate?
What is the average inventory?
What is the average flow time?