Consider continuous review inventory system

Assignment Help Operation Management

Reference no: EM13962026

Consider a continuous review inventory system. Demand is normally distributed with an average of 44,000 per month and a monthly standard deviation of 1320 units. Lead time is two weeks (assume one month is four weeks). If the firm desires only an 81% cycle service level, how many units of safety stock should be held?

Reference no: EM13962026

Questions Cloud

Determine average cycle time-time to complete the batch : A batch production operation has a machine setup time of 4.0 hours and a processing time of 1.50 min per cycle. Two parts are produced each cycle. No tool handling time is included in the cycle. Determine (a) average cycle time, (b) time to complete ..

Technological changes or other societal evolutions : Organizational Structure Use the ITT Tech Virtual Library to find one business magazine article about functional or hierarchical organizational structure and management modes and one article about matrix organizational structure and management modes...

Consider a periodic review system : Consider a periodic review system, where orders are placed every 12 days. The firm strives to provide a 97.5% cycle service level. Demand averages 300 units per day, and the standard deviation of demand per day is 64 units. Lead time is 18 days.

How many units of safety stock should be held : Consider a periodic review system, where orders are placed every 12 days. The firm strives to provide a 97.5% cycle service level. Demand averages 300 units per day, and the standard deviation of demand per day is 64 units. Lead time is 18 days. How ..

Consider continuous review inventory system : Consider a continuous review inventory system. Demand is normally distributed with an average of 44,000 per month and a monthly standard deviation of 1320 units. Lead time is two weeks (assume one month is four weeks). If the firm desires only an 81%..

What is the optimal order quantity : Skinner’s Fish market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $2.40 per pound. Daily demand can be approximat..

Annual demand for its boxes of chocolate heaven candies : Suzy’s Candy Distributors has an annual demand for its boxes of “Chocolate Heaven Candies” of 280,000 units, an ordering cost of $75 per order, and an annual holding cost percentage of 18%. The current purchase price for each box is $28, but the supp..

Supplies special makeup cases to a major circus : Sad Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every two months. Sad clowns incurs setup costs of $500 every time it produces these cases, and its annual holding cost per case is $3. How many..

What is the total annual setup and holding cost : Sad Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every two months. Sad clowns incurs setup costs of $500 every time it produces these cases, and its annual holding cost per case is $3. What is ..

User Account

All Pages