What will be the new order target level

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The business school uses a cyclic review to control its photocopy-paper stocks and places an order every month. Assume a month is 30 days to answer the following questions:

a) If the school uses 10 packets of paper a day and the paper company could deliver an order in 4 days, what is the target stock level (T)?

b) At the end of this month the business school finds it has 40 packets of paper left in the stock. Using the above information, how many packets should they order?

c) Faculty secretary realizes that sometimes the usage is more than the general and Professors become angry if they cannot find papers in the stock during the exam periods. She wants to add an extra 10% to orders as the safety stock. What will be the new order Target level?

Reference no: EM132783716

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