railway RRB JE (CBT I + CBT II) Mock Test 2024 Industrial Engineering Production Planning and Inventory Control Inventory Control
An airline has determined that 10 spare brake cylinders will give them stock out risk of 30%, whereas 14 will reduce the risk to 15% and 16 to 10%. It takes 3 months to receive items from supplier and the airline has an average of 4 cylinders per month. At what stock level should they reorder assuming that they wish to maintain 85% service level?
1
12 items
2
14 items
3
26 items
4
30 items