Jitsmart is a retailer of plastic action-figure toys. The actionfigures are purchased from Tacky Toys, Inc., and arrive inboxes of 48. Full boxes are stored on high shelves out of reachof customers. A small inventory is maintained on child-levelshelves. Depletion of the lower-shelf inventory signals theneed to take down a box of action figures to replenish theinventory. A reorder card is then removed from the box andsent to Tacky Toys to authorize replenishment of a containerof action figures. The average demand rate for a popular ac-tion figure, Agent 99, is 36 units per day. The total lead time(waiting plus processing) is 11 days. Jitsmart’s safety stockypolicy variable, a, is 0.25. What is the authorized stock levelfor Jitsmart?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Jitsmart is a retailer of plastic action-figure toys. The action
figures are purchased from Tacky Toys, Inc., and arrive in
boxes of 48. Full boxes are stored on high shelves out of reach
of customers. A small inventory is maintained on child-level
shelves. Depletion of the lower-shelf inventory signals the
need to take down a box of action figures to replenish the
inventory. A reorder card is then removed from the box and
sent to Tacky Toys to authorize replenishment of a container
of action figures. The average demand rate for a popular ac-
tion figure, Agent 99, is 36 units per day. The total lead time
(waiting plus processing) is 11 days. Jitsmart’s safety stocky
policy variable, a, is 0.25. What is the authorized stock level
for Jitsmart?

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