What should their order-up-to level be

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Reference no: EM131749738

Weekly demand for gaming consoles at a BestBuy store is normally distributed with a mean of 1,000 and a standard deviation of 400. The replenishment lead time from the supplier is 4 weeks. BestBuy is targeting a SL of 95% and uses a periodic review policy under which it reorders consoles every 8 weeks.

(a) What is the average order size?

(b) How much safety inventory should they carry? What should their order-up-to level be?

Reference no: EM131749738

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