Annual call for for a product is 10,920 gadgets; weekly call for is 210 gadgets with an ordinary deviation of 40 gadgets. The price of putting an order is $155, and the time from ordering to receipt is 4 weeks. The yearly stock wearing price is $zero.70 in keeping with unit.
To supply a 90 % provider chance, what should the reorder level be?
Assume the manufacturing supervisor is advised to scale back the security inventory of this merchandise by means of 80 gadgets. If that is completed, what’s going to the brand new provider chance be?