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27 October, 22:50

If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

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  1. 27 October, 23:05
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    statistical safety stock can not determine without lead time

    Explanation:

    given data

    standard deviation of demand = 6 per week

    demand = 50 per week

    desired service level = 95%

    As we know that safety stock is refer to extra stock level i. e maintained in order to eliminate the risk of shortage of stock

    because supply and demand may vary

    and safety stock is based on lead time and demand and Lead time refer to time when the order is placed

    hence here lead time is unavailable so that safety stock can not determine without the lead time data
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