What rop will provide a lead time service level

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Reference no: EM133448981

Case Study: Sahara Grocery Store is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $1, and carrying costs are 40 cents per roll a year. Lead time is three days.

Questions:

What is the EOQ?
What ROP will provide a lead time service level of 96 percent?
What if lead time has become sketchy and now is 4 days with a standard deviation of 2 days. How does this change your answer for A/B?

Reference no: EM133448981

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