Ways to establish the daily demand for paper towels, Supply Chain Management

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Ways to establish the daily demand for paper towels

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Q: The local Mars grocery store uses a periodic review model to stock their paper towels. After collecting some data, the firm was able to establish that the daily demand for paper towels is 17 packs. The store reviews its inventory once a week and places an order on Sunday. The lead time to get the product from the local distribution center is 4 days and 20 packs are held as safety stock. What should be the order quantity if the inventory at the time of order placement is 71 packs?

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Supply Chain Management: Ways to establish the daily demand for paper towels

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