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Safety inventory of paper towels should target carry

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Weekly demand for paper towels at a Target store is normally distributed with a mean of 1,000 and a standard deviation of 300. The supplier takes two weeks to supply a Target order whih is for a batch size of 5,000. Target is aiming for a fill rate of 99 percent and monitors its inventory continuously. How much safety inventory of paper towels should Target carry? What should its ROP be? Use Excel and use Goal Seek.

Reference no: EM131743702

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