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Daily demand for a product is 160 units, with a standard deviation of 20 units. The review period is 15 days and the lead time is 2 days. At the time of review there are 70 units in stock.
If 90 percent service probability is desired, how many units should be ordered? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Ordered quantity units
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What are they and in what situations might they be used ? How might you respond to someone employing hardball tactics against you ?
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