Solution-What is pipeline inventory of cleaning vinegar

What is pipeline inventory of cleaning vinegar

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Reference no: EM133326590

Larry Peterson is the inventory manager for CrystalCleart an online retailer based in Montana that only sells eco-friendly cleaning products. Cleaning vinegar is one of their most demanded products. Annual demand for cleaning vinegar is normally distributed with a mean of 940 liters and standard deviation of 233 liters. Larry's current inventory policy is ordering 235 liters every 3 months from their main supplier. The lead time between placing and receiving the order is 1 month, and CrystalClear takes ownership of the product as soon as it leaves the supplier's facility. Considering that the cycle service level target is 90%:

1. What is the cycle stock (in liters) of cleaning vinegar under this policy?

2. What is the pipeline inventory (in liters) of cleaning vinegar under this policy?

3. What is the safety stock (in liters) of cleaning vinegar under this policy?

Reference no: EM133326590

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What is pipeline inventory of cleaning vinegar

Reference no: EM133326590

Reference no: EM133326590

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