The weekly demand of a certain consumable item

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The weekly demand of a certain consumable item XYZ at NAS North Island follows Poisson distribution with a mean of 5. The demand at NAS Miramar follows the same distribution with the mean of 6. Assume that the inventory is monitored continuously and the order lead time is 3 weeks. (a)What is the required stock level at the beginning of the week to maintain the service level at 98% (use z=2.05) at both places? (b) What is the required stock level if the above two NAS’ are consolidated?

Reference no: EM13965576

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