Assume that the beginning inventory level is equal to the


Jimmy's Delicatessen sells large tins of Tom Tucker's Toffee. The deli uses a periodic review system, checking inventory levels every 17 days, at which time an order is placed for more tins. Order lead time is 4 days. Daily demand is a constant 8 tins, so average demand during the reorder period and order lead time (21 days) is 168 tins. Draw a sawtooth diagram. Assume that the beginning inventory level is equal to the restocking level and the desired service level is 95%. What is the safety stock level? (Hint: Look at the formula for calculating restocking level.) What is the average inventory level?

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Operation Management: Assume that the beginning inventory level is equal to the
Reference No:- TGS02592898

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