n a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time is 85 units. The desired cycle-service level is 99 per- cent. The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level?

Automotive Technology: A Systems Approach (MindTap Course List)
6th Edition
ISBN:9781133612315
Author:Jack Erjavec, Rob Thompson
Publisher:Jack Erjavec, Rob Thompson
Chapter34: Emission Control Diagnosis And Service
Section: Chapter Questions
Problem 5RQ: Explain why the I/M 240 and similar tests are being replaced by the OBD II system test.
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In a continuous review inventory system, the lead time for door
knobs is 5 weeks. The standard deviation of demand during the
lead time is 85 units. The desired cycle-service level is 99 per-
cent. The supplier of door knobs streamlined its operations and
now quotes a one-week lead time. How much can safety stock
be reduced without reducing the 99 percent cycle-service level?

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