Answer:
Check the explanation
Explanation:
Mean, D = 500
Standard deviation, ao = 300
Mean, L = 9 weeks
Standard deviation, .s1 = 6 weeks
Use the following formula to calculate safety stock level:
Safety stock = [tex]2.33 X \sqrt[]{9} X 300[/tex] = 2093.7
In case of European supplier,
Safety stock = [tex]2.33X\sqrt{1}X300[/tex] = 699
Kindly check the attached images below to see the spreadsheet solution to the question above