Uncle Chuck's Chicken Sandwich operates 360 days per year and uses a periodic system to make inventory decisions for fries. Daily demand has been forecast to be 600 units and the standard deviation of daily demand is 300 units. The order interval is 10 days and the order lead time is 4 days. Uncle Chuck's Chicken Sandwich desires to maintain a service level of 98% for this item. How much safety stock Uncle Chuck needs to carry? Do not round intermediate calculations. Round your answer to a whole number. Your Answer: Answer

Uncle Chuck's Chicken Sandwich operates 360 days per year and uses a periodic system to make inventory decisions for fries. Daily demand has been forecast to be 600 units and the standard deviation of daily demand is 300 units. The order interval is 10 days and the order lead time is 4 days. Uncle Chuck's Chicken Sandwich desires to maintain a service level of 98% for this item. How much safety stock Uncle Chuck needs to carry? Do not round intermediate calculations. Round your answer to a whole number. Your Answer: Answer

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 21P

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