Consider the stocking level of a single item

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Consider the stocking level of a single item: Waist 36, inseam 34, green plaid pattern #7, Johnny Miller actionwear slacks. Deliveries are weekly, and the store wishes to provide 98% service (fill rate). Shockingly, demand for this item is 8 per week, with a variance of 60, corresponding to the product Nega BynoMeal in the chapter example 13.2 on your Student CD. The pants cost the store $25 each. How much should be stocked, and how much will it cost, given each of the following strategies discussed in the chapter (weeks of sales, constant K, and marginal analysis)?

Reference no: EM1381771

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