| P301 - Problem 10 |
| The Food distributor from problme 9 has also decided to use the ROP system for determining when to place an order. The purchasing manager has determined that the monthly demand for crates of 8000 has a standard deviation of 200. The current supplier of the crates has a .25 month lead time. If the manager wants a 95% customer service level on the crates, what should the ROP be for this item? |
| 1. What would the reorder point be for the paper? |
| 2. If the manager was considering using a 99% customer service level how much more safety stock would it need compared to the 95% customer service level? |
t.erins2t
hw_problem_10.xlsx
