What is the service level

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Reference no: EM132730098

The Circuit town store sells an average of 160 packs of 9-volt batteries per day. The daily demand follows a normal distribution with a standard deviation of 20 packs. The supplier, who is located in another state, has an average LT of 1 day.

-To maintain a 97% service level for this product, what ROP is appropriate?

-Suppose lead time has a standard deviation of 0.5 day, then what is ROP? And why is it different from 1)?

-Suppose there is another store that has exactly the same information and we want to aggregate them, then what is the ROP?

-If the supplier always reorders when the inventory level is 200, then what is the service level? Why is it different from 1)?

Reference no: EM132730098

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