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Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323 Exercise 6
The standard deviation of demand during the lead time is 100 units.
a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, 99.99%.
b. Calculate the change in safety stock required to increase the service levels from 75% to 80%, 80% to 85%, 85% to 90%, 90% to 95%, and 95% to 99.99%. What conclusion do you reach?
a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, 99.99%.
b. Calculate the change in safety stock required to increase the service levels from 75% to 80%, 80% to 85%, 85% to 90%, 90% to 95%, and 95% to 99.99%. What conclusion do you reach?
Explanation
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Safety stock:
Safety stock helps in con...
Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
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