Service Level (%) Safety Factor 50 0.00 75 0.67 80 0.84 85 1.04 90 1.28 94 1.56 95 1.65 96 1.75 97 1.88 98 2.05 99 2.33 99.86 3.00 99.99 4.00 FIGURE 11.5 Table of safety factors.
Service Level (%) Safety Factor 50 0.00 75 0.67 80 0.84 85 1.04 90 1.28 94 1.56 95 1.65 96 1.75 97 1.88 98 2.05 99 2.33 99.86 3.00 99.99 4.00 FIGURE 11.5 Table of safety factors.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.19E
Related questions
Question
If sigma is 130 units, and the demand during the lead time is 250 units, calculate the
safety stock and order point for:
a. A 50% service level.
b. An 85% service level.
Use the table in Figure 11.5 as help to calculate your answer.
Transcribed Image Text:Service Level (%)
Safety Factor
50
0.00
75
0.67
80
0.84
85
1.04
90
1.28
94
1.56
95
1.65
96
1.75
97
1.88
98
2.05
99
2.33
99.86
3.00
99.99
4.00
FIGURE 11.5 Table of safety factors.
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