In a P system, the lead time for a box of weed-killer is three weeks and the review period is one week. Demand during the protection interval averages 231 boxes, with a standard deviation of demand during the protection interval of 50 boxes. a. What is the cycle-service level when the target inventory is set at 350 boxes? Refer to the standard normal table as needed. The cycle-service level is 99.13 %. (Enter your response rounded to two decimal places.) b. In the fall season, demand for weed-killer decreases but also becomes more highly variable. Assume that during the fall season, demand during the protection interval is expected to decrease to 190 boxes, but with a standard deviation of demand during the protection interval of 60 boxes. What would be the cycle-service level if management keeps the target inventory level set at 350 boxes? Refer to the standard normal table as needed. The cycle-service level would be %. (Enter your response rounded to two decimal places.)
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The z-score is given by: z = (Target Inventory - Average Demand) / Standard Deviation z = (350 - 231) / 50 z = 119 / 50 z = 2.38 Now, we can use the standard normal table to find the cycle-service level corresponding to this z-score. A z-score of 2.38 Show more…
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