Cascada uses a Q- model to make inventory decisions about replacement part for one of the pumps it makes. Annual demand is 2500 units and they operate 250 days per year. The standard deviation of daily demand is 5 units. The estimated cost is $ 10 to hold one unit for a year and $50 to place an order. The suppliers lead time is 4 days and they want a 99% service level
23. what's the optimal order quantity?
b) What's the expected level of demand during lead time?
c) Approximately how much safety stock is required to maintain their desired service level?
d) which of the following responses is closest to the appropriate re-order point?
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