What should be the safety stock for the item

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Reference no: EM132810008

M.66 Overstock.com sells a variety of products that are sourced from around the world. Here is some information about a very popular bamboo doormat:

Demand (per month) = 47
Variation in demand (per month) = 22
Lead time (in weeks) = 5 (It is sourced from overseas, hence the long lead time.)
Desired service level = 85%

Problem 1: Given the above information, what should be the safety stock for this item? (Assume 30 days per month. two decimal places.)

Problem 2: What should be their reorder point?

Reference no: EM132810008

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