Question

A pet daycare center uses a significant amount of canned dog food, which is ordered monthly. When considering the March 1 order, the table below would be useful because it shows the forecasted demand for the upcoming months. The forecast CV is 25%. The lead time for receiving the food is four months. The target cycle service level is 96%. Current inventory is 1158 cans, and there are 7340 cans in transit. Calculate the order up to level (OUL) and order quantity for the March order. Show all work.

Month Forecast (cans)
Mar 2000
Apr 1500
May 1000
June 500
July 500
Aug 1000
Sep 1500
Oct 2000
Nov 2000
Dec 2000

Answer 1

order quantity we are getting negative i think the value of cans in transit value is wrong