Cycle service level-what is the reorder point

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Under the continuous review policy, the average daily demand for Apple Ipad II at a Circuit Town store is 15, with a standard deviation of 5 units. The lead time is constant at 2 days. If the management wants a 90% cycle service level.

How much of this is safety stock?

What is the reorder point?

If the order quantity is at EOQ which through calculation we get 250 units, please describe the order policy in words.

Reference no: EM131027460

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