Average Demand Per Period= 1,000
Standard Deviation= 70
Average Lead Time= 2
Suppose I plan to instead set up a periodic review inventory system, and I will order this item every 7 days. There is still a 2 day lead time.
The "order up to" level T must cover what protection interval ?
What is the average demand during the protection interval?
What is the standard deviation of demand during the protection interval?
Using this periodic review system, what order up to level (T) would result in 100 units of safety stock?
What is the predicted service level under this safety stock value?
What order up to level is needed to provide 99% predicted service level? How much safety stock is associated with this policy.