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21000 =1414
ROP= 5000
= NORMDIST (5000, 3000, 1414,1) =0.92
A CSL of 0.92 implies that in 92 percent of the Replenishment cycles of ABC
ltd supplies all demand from available inventory. In the remaining 8percent
of the cycles, stock outs occur and some demand is not satisfied because of
the lack of inventory.
ROP=6000
= NORMDIST (6000,3000,1414,1) =0.98
A CSL of 0.98 implies that in 98 percent of the Replenishment cycles of ABC
ltd supplies all demand from available inventory. In the remaining 2 percent
of the cycles, stock outs occur and some demand is not satisfied because of
the lack of inventory.
L *Standard deviation
4 * 20=40
n .
1075
Dem
and
7750
9250
1700
0
Profit
31645
83
99437
50
1310
8333