Estimate demand parameters

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A company is introducing a new product and believes the first year sales will be 2,000 units. If things go better than expected, they think sales could reach as high as 2,900 units in year one. Or, if the product is poorly received, the first year demand could be as low as 1,100 units. If the lead time is four weeks, the service level target is 90%, and they use the PERT distribution to estimate demand parameters, how many units of finished goods safety stock should they hold in year one?

Reference no: EM132735650

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