Jitsmsmart 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-levels 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 the replenishment of a container of action figures. The average demand rate for popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart's safety stocky policy variables 0.25. What is the authorized stock level for 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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Jitsmsmart 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-levels 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 the replenishment of a container of action figures. The average demand rate for popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart's safety stocky policy variables 0.25. What is the authorized stock level for Jitsmart?

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