Explain-expected level of inventory
Problem:
Consider the (Q,R) policy. Explain why the expected level of inventory before receiving the order is z x STD x √ L While the expected level of inventory immediately after receiving the order is Q + z X STD X r + √L
Expected delivery within 24 Hours
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What is the impact of lead time, and lead time variability, on inventory levels?
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Explain why the expected level of inventory before receiving the order is z x STD x v L
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