Problem: Bell computers produces and stocks compute printers in its finished goods warehouse. These DDLT historical data are believed to be representative of future demand for one printer model.
aActual DDLT Frequency
0-29 0
30-39 .10
40-49 .10
50-59 .15
60-69 .20
70-79 .25
80-89 .10
90-99 .05
100-109 .05
110-120 0
I need some help with this question. I do not understand.
1. If at least a 90 percent service level is to be provided for these printers
a. what would be the order point?
b. what would be the safety stock?