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Graduate Level Inventory/Operations Management Question

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Hi there: Please only attempt to do this if you are certain of the correctness of the outcome! Please attach excel spreadsheets and / or calculations so I can learn how you did this problem. Thank you! I'm attaching this problem.

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See the attached file. Hope this will help. Thanks

Part 1

For a given Type-I service level, we will calculate the safety stock for stores:

Demand Information Lead time information
R (average) = 50 LT (average) = 8
sR (standard deviation) = 30 sLT (standard deviation) = 0

Target Type-I service level (prob of no stock-out)
0.95

Step 1:
Lead time demand information
R*LT (average) = 400
sdLT (standard deviation) = 84.85281374

Step 2:
normal distribution z value 1.644853
Safety stock 139.5704053

Step ...

Solution Summary

This solution assists with the graduate level inventory and operations management question.

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