For the next five questions, use the following information: Delta-Gen, Inc., purchases specialized construction cement from an overseas supplier under a continuous review system. The average demand is 300 units/day with a standard deviation of 30 units/day. It costs $50 to process each order and there is a nine-day lead-time. The holding cost is $0.3 per year and the company policy is to maintain a 94% service level. what us safety stock need to satisfy 94%?
reorder point to satify 94%?
cost if holding the safety stock to maintain 94%?
reorder point of 2750 imply?
lead time increase fron 9 to 11 days , new order point need for 96%.
