A product has a daily demand of 50 units. Inventory is checked every 7 days and when an order is placed it takes 5 days to arrive from the supplier. The standard deviation over this 12 day period is 125 units. The company wants to maintain a 92% service level for this product. What should the restocking level be set at? (Slide 6)
527 units
777 units
715 units
350 units
657 units
250 units
600 units
427 units
For the product in the previous problem, if the company decides to change the service level to 96%, what would happen to the restocking level? (Slide 6)
It would remain the same.
It would be lower.
It would be higher.
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