Inventory for the manufacturing department

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Reference no: EM131083874

Suppose that you are a procurement specialist at XYZ corporation. One of your responsibilities is to make sure that you have enough parts on hand for your manufacturing department to process.

Your manager has indicated that "we should be 95% confident that we will have enough inventory for the manufacturing department." Also, you know from experience that once you place an order on the supplier, the "lead time" takes 10 weeks for the order to arrive.

Using the daily demand data below (and assuming calendar days where 1 week = 7 days), determine how many extra units of the part you should carry (i.e., safety stock).

Round to the nearest whole number (e.g., enter 54.5 as 55).

Day

Demand

1

92

2

89

3

126

4

188

5

149

6

132

7

160

8

90

9

146

10

89

11

201

12

105

13

104

14

85

15

154

16

105

17

190

18

86

19

136

20

145

21

121

22

126

23

163

24

116

25

190

Reference no: EM131083874

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