Posted: December 7th, 2013
Supply Chain Math Homework
Spark Industries uses a monthly periodic system to maintain the inventory of batteries it sells. Below is the sales data for the last 6 months.
|
Month
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
|
Units Sold
|
124
|
162
|
145
|
111
|
81
|
133
|
a) What is the company’s average monthly demand for batteries?
b) Assume the standard deviation of demand is 28.1 batteries and Spark Industries wants to be in stock at least 95% of the time. What is the appropriate restocking level?
c) If there are currently 115 batteries on hand when the order is placed for July, how many batteries should be ordered?
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