Service level is considering reducing its inventory levels

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Reference no: EM132308528

In response to the pressures of a weak economy, a firm that has been achieving a 95% service level is considering reducing its inventory levels. (Assume there will be no change in demand.)

a) What service level can they expect to achieve if they reduce their safety stock by 10%?

b) What service level can they expect to achieve if they reduce their safety stock by 30%?

Reference no: EM132308528

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