Supply Chain Math Homework Question

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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?

 

    • 10 years ago
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