What is the average number of stockouts stockout units per


The Kharn Corporation orders 5 units of an item every day. Daily demand of this item averages 5 units and is distributed as follows: Demand 1 2 4 5 6 7 9 Probability: 0.01 0.04 0.1 0.2 0.3 0.2 0.1 0.04 0.01 a). If management sets the reorder point at 7 units, what is the service level? b). Assuming 200 workdays (annual demand -1000), how many units of annual demand cant be supplied out of inventory? c).What is the average number of stockouts (stockout units) per order cycle? d). What is the total number of stockout units in a year? Please Show all work.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: What is the average number of stockouts stockout units per
Reference No:- TGS02592685

Expected delivery within 24 Hours