Answer:
690 units
Explanation:
daily demand = 60 units
standard deviation = 10 units
review period = 10 days
lead time = 2 days
stock = 100 units
service probability = 98%
order quantity using fix time period formula:
[tex]q = \bar{d}(L+R) + z \sigma_{L+R} - I[/tex]
- standard deviation = [tex]\sigma_{L+R} \\[/tex] = √(10 + 2) x 10 = 34.64
- z for 98% = 2.05
- I = stock = 100
- [tex]\bar{d}(L+R)[/tex] = 60 x (10 + 2)
order quantity = (60 x 12) + (2.05 x 34.64) - 100 = 690 units
