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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead time is 2 weeks. Sales history for the past 10 weeks follows. Calculate:
a. Sigma for the history time interval.
b. Sigma for the lead time interval.
c. The service level.
d. The safety stock required for this service level.
e. The order point.

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