Calculate the safety stock assuming risk level

Assignment Help Financial Management

Reference no: EM131366925

Management has not been pleased with the number of stockouts for a particular item. This item has 700 pounds of demand during the lead time and a standard deviation during the lead time of 75 pounds. Calculate the Safety Stock assuming a 4% risk level. (Keep two decimal places in your answer)

Reference no: EM131366925

Questions Cloud

Describe them and how they are positive-negative : Coca-Cola is a memorable soft drink industry. What are some options that the CEO can do to change marketing, product, and expenses (more accounting and financial terms). Describe them and how they are positive/negative.

Describe highly cohesive group : Group Cohesion Describe a highly cohesive group you have been a part of. Describe the structure of the group and the characteristics that made the group feel cohesive and “together . ” Describe a low-cohesive group you have been a part of. Describe t..

Economic ordering quantity : TCL comapny has steady demand of the product it sells. Therefore it uses only the economic ordering quantity (EOQ). to determine inventory size. Determine its EOQ if Order cost is $25 Annual demand is 100,000 units Average inventory carrying cost is ..

Without leaving the child finances upended : Wanting to give children everything is a right of passage for parents, an urge that may never go away. From the new toy to the fancy car, showering children and grandchildren with gifts is something that financial advisor Celia Brugge sees often. "Mo..

Calculate the safety stock assuming risk level : Management has not been pleased with the number of stockouts for a particular item. This item has 700 pounds of demand during the lead time and a standard deviation during the lead time of 75 pounds. Calculate the Safety Stock assuming a 4% risk leve..

The environmental protection agency : What is the purpose of the General Agreement on Tariffs and Trade (currently known as WTO framework)? Shares of company stock awarded after a fixed period of years if individual and company performance goals are met are called: The Environmental Prot..

Why is strategic implementation so difficult : Why is strategic implementation so difficult? Explain why this process is difficult and detail the steps or actions a company should take to improve this process. From the perspective of a Public Relations Person for an Oil Company, what is the relat..

What type of partnerships-alliances should coach consider : What type of partnerships and alliances should Coach Inc.consider? Describe at least one alliance and one partnership that Coach Inc. should consider. Identify the partner and explain what Coach Inc. would gain from these relationships.

Surfing the internet on company time : Surfing the Internet on Company Time. Did Helen Barnett's actions invade James Erskine's right to privacy ? Was national insurance justified in suspending Erskine ? What should be the key elements of an employee computer and Web used policy ?

User Account

All Pages