What amount of safety inventory

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A company works 50 weeks in a year. The average weekly demand for its products is 300 units with a standard deviation of 80 units. The cost to place order is $29.50, and the time from ordering to receipt is five weeks. The annual inventory carrying cost is $0.50 per unit. ? Find the reorder point necessary for a desired 96% service level. What amount of safety inventory would you therefore recommend? ? Suppose the production manager is asked to reduce the safety stock of this system by 35%. If she does so, what will the new service level be?

Reference no: EM131759072

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