computer the reorder point, Operation Management

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(b) Suppose Norwitch has worked out a new contract, accepted by all its customers, of being allowed up to one week to satisfy each demand. Norwitch still uses a 99% "fill rate" as a target service measure. However, stockouts satisfied within a week is considered as good as demand satisfied from the on-hand inventory.

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MANUFECTURING ENGINEERING, proof V=C((n/(n-1))^n)(r/(r*T+r)^n

proof V=C((n/(n-1))^n)(r/(r*T+r)^n

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