Rady computer copr produces a 4 week supply of its pc model, Operation Management

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Rady computer copr produces a 4 week supply of its pc model

Rady Computer Copr produces a 4 week supply of its PC model when stock on hand drops to 500 units. It takes 1 week to produce a batch of this PC model. Fatort order average 400 units per week, and the standard deviation of forecast errors is estimated at 125 units.

a) What level of customer service is Rady Computer providing to its distributors in terms of stock availability?

b) Rady computer wants to improve customer service to 90%

-What is the new safety stock?

- How will such an improvement affect the company's reorder policy (what is the new ROP)?

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Operation Management: Rady computer copr produces a 4 week supply of its pc model

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