What inventory level would you re-order

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Reference no: EM131794338

RedBull uses cans in its production of their extra strength energy drink, RedBullMAX, RedbullMAX usage appears to be normally distributed with in average rate of 570 cans per day. With an annual total of 182,500 cans used each year. Ordering costs amount to $60 per order and carrying costs are $2 per unit per year. Lead time is 6 days with a standard deviation of 3 days. Assuming a desired 72% service level, at what inventory level would you re-order?

Reference no: EM131794338

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