Exercise 12-2: Gap
Inputs
Average demand per unit time, D = 100
Lead time, L = 3
SD of demand per unit time, σD = 50
Reorder Point, ROP 350
Distribution of Demand during Replenishment Lead Time
Mean demand during lead time, DL = 300
SD of demand during lead time, σL = 87
Outputs
Safety inventory, ss = 50
Cycle service level, CSL = 0.72
Desired CSL Is 95%
Required safety inventory, ss 142
Reorder point, ROP 442
CR – 12/3/2020 10:00 AM Page 1 Ex 12-2.xlsx – VALUES