Exercise 12-9: Target
Inputs
Average demand per unit time, D = 1000
Lead time, L = 2
SD of demand per unit time, σD = 300
Order quantity Q= 5000
Desired fill rate, fr 0.99
Distribution of Demand during L
Mean demand during lead time, DL = 2000
SD of demand during lead time, σL = 424
Intermediate Calculations
Required expected shortage per replenishment cycle = 50.00
Outputs
Safety Inventory, ss = 344
Reorder Point 2344
Expected shortage per replenishment cycle, ESC = 50.00
Use GOALSEEK to obtain the above results. Set
Set cell:
C21
To value:
50
By changing cell: C19