A product has an average daily consumption of 15986pcs, knowing that the service level is 93,4% and the response time is 12 days of how many pieces should the safety stock be formed and what is the replacement level. This company has an average inventory of 389553pcs and in the year sold 1975034pcs. What is the inventory turnover?
CMD = 15986pcs
K = 93,4%
TR = 12days
ES = CMD x K x TR
Safety stock = 15986 x 0,934 x 12
Safety stock = 179171pcs
NR=CMD x TR + ES
replacement level = 15986 x 12 + 179171
replacement level = 371003pcs
Inventory Turnover = Sales/Average volume of stock
Inventory Turnover = 1975034/389553
Inventory Turnover = 5,07