What is the average inventory and the order point

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A company stocks an SKU with a weekly demand of 500 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500 units, what is the average inventory and the order point?

Reference no: EM131289408

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What is the average inventory and the order point : A company stocks an SKU with a weekly demand of 500 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500 units, what is the average inventory and the ord..

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