Exercise 12-8: Walmart
Inputs
Average demand per unit time, D = 3,000
Lead time, L = 2
SD of demand per unit time, σD = 700
Order quantity, Q= 10,000
Reorder Point, ROP 7,000
Distribution of Demand during Replenishment Lead Time
Mean demand during lead time DL = 6000
SD of demand during lead time σL = 990
Outputs
Safety Inventory, ss = 1,000
Cycle Service Level, CSL = 0.84
Expected shortage per replenishment cycle, ESC = 80.90
Fill Rate, fr = 0.992
CR – 12/3/2020 10:01 AM Page 1 Ex 12-8.xlsx – VALUES