Explain how much safety inventory of cell phones

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Q. Weekly demand for Motorola cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. Motorola takes 2 weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. Explain how much safety inventory of cell phones should Best Buy carry? Illustrate what should its ROP be?

 

 

Reference no: EM1374820

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