Solution-What service level does the safety stock represent

What service level does the safety stock represent

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An assembly line produces 800 products per hour, with a standard deviation of demand during lead time of 100. For every product they make they use a Kanban system. The lead time from the inventory location to the assemble line is 2 hours. The boxes the product is transported in can carry 200 items and the company uses an alfa factor of 0.1.

- Assume Cycle Service is used. Here are two tables that might be useful for answering the question below:

- What service level does the safety stock represent ? (The probability of not having a shortage during one inventory cycle.)

Reference no: EM133529973

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What service level does the safety stock represent

Reference no: EM133529973

Reference no: EM133529973

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