Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 33

A company uses the periodic review inventory model to calculate its reorder quantity. The company currently places orders weekly. The item is produced and shipped from Asia with a lead time of eight weeks. The company currently has 1000 items on hand. If the company uses the product at the rate of 250 per week with a standard deviation of daily usage of50 over the uncertainty period, what order quantity is needed to achieve a service level of 98%?