Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones,on average 1500 per week with a standard deviation of 145.The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones.To ensure they never run out,they keep a safety stock of 500 phones with Proposition Joe.
-What safety stock should be held to put the expected shortage per cycle at 5 phones?
A)418 phones
B)433 phones
C)462 phones
D)487 phones

Question

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The Answer of Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones,on average 1500 per week with a standard deviation of 145.The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones.To ensure they never run out,they keep a safety stock of 500 phones with Proposition Joe.
-What safety stock should be held to put the expected shortage per cycle at 5 phones?
A)418 phones
B)433 phones
C)462 phones
D)487 phones