ABC Inc. operates 360 uaya per ycar au uaua uel to make inventory decisions about plastic pellets used in the injection molding equipment that makes the cell phone cases. Daily demand has been forecast to be 600 units with a standard deviation of 300 units. The order interval is 30 days and order lead time is 19 days. ABC Inc. currently uses a safety stock level of 2500 units for plastic pellets. What percentage is the approximate service level for this inventory item?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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ABC Inc. operates 360 uaya per ycar onu uscaaruuel to make inventory
decisions about plastic pellets used in the injection molding equipment that makes
the cell phone cases. Daily demand has been forecast to be 600 units with a
standard deviation of 300 units. The order interval is 30 days and order lead time is
19 days. ABC Inc. currently uses a safety stock level of 2500 units for plastic pellets.
What percentage is the approximate service level for this inventory item?
Transcribed Image Text:ABC Inc. operates 360 uaya per ycar onu uscaaruuel to make inventory decisions about plastic pellets used in the injection molding equipment that makes the cell phone cases. Daily demand has been forecast to be 600 units with a standard deviation of 300 units. The order interval is 30 days and order lead time is 19 days. ABC Inc. currently uses a safety stock level of 2500 units for plastic pellets. What percentage is the approximate service level for this inventory item?
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