b. The average daily demand for watermelons from Trinbago Super Farmers Limited (TSFL) is 90 units, with a standard deviation of 10 units. The review period is 28 days and the lead time is 7 days. Management has set a policy of satisfying 95 percent of the demand from items in stock. At the beginning of the review period, there are 185 units in inventory. (i) How many units of watermelons should be ordered?

b. The average daily demand for watermelons from Trinbago Super Farmers Limited (TSFL) is 90 units, with a standard deviation of 10 units. The review period is 28 days and the lead time is 7 days. Management has set a policy of satisfying 95 percent of the demand from items in stock. At the beginning of the review period, there are 185 units in inventory. (i) How many units of watermelons should be ordered?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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