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Cell phone cases arenât the most critical product the Verizon store sells. Therefore, they use a monthly periodic review system to manage this inventory. Assume the reorder period plus lead time is one month. Below is the sales data for cell phone cases for the last 5 months.
Month // Units Sold
Novâ16 // 2203
Decâ16 // 2392
Janâ17 // 1794
Febâ17 // 1207
Marâ17 // 1159
a) What is the companyâs average monthly demand for cell phone cases? (2 points)
b) Assume the monthly standard deviation of demand is 562.0 cell phone cases and the company wants to be in stock at least 90% of the time. What is the appropriate restocking level? (2 points)
c) If there are currently 1350 cell phone cases on hand when an order is placed, how many cell phone cases should be ordered? (2 points)
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