Determine the necessary safety inventory safety stock, Operation Management

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Determine the necessary safety inventory safety stock

Values I have:

- Annual Demans: 29,760

- Weekly demand: 572 units

- 12.3 Standard Deviation

- Holding: .15

What I need to figure out:

Thesupplier has a lead-time of 2 weeks. The company would like its Cycle Service Level (CSL) to be 0.90.

- Determine the necessary safety inventory ( safety stock) level for a continuous replenishment policy.

What is the Reorder point (ROP)?

What is the fill rate?

What is the average inventory?

What is the average flow time?

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Operation Management: Determine the necessary safety inventory safety stock

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