Demand is normally distributed with a standard deviation

Assignment Help Operation Management

Reference no: EM13954062

The manager of the Quick Stop convenience store (which never closes) sells 24 six packs of Fizzy soda each day. Order costs are $8.00 per order, and Fizzy soda costs $4.00 per six-pack. Holding costs are $1 per six pack. Orders arrive five days from the time they are placed.

A) If lead time is constant and demand is normally distributed with a standard deviation of 5 six packs, what safety stock should Quick Stop carry for a 99% service level (round to nearest whole number)? Round to the nearest whole number.

B) If demand is constant and lead time is normally distributed with a standard deviation of 2 days, what safety stock should Quick Stop carry for a 95% service level (round to the nearest whole number)?

C) If demand varies with a standard deviation of 5 six packs and lead time varies with a standard deviation of 2 days and the Quick Stop carries safety stock for a 98% service level, what is the reorder point (round to the nearest whole number)?

Reference no: EM13954062

Questions Cloud

Assume that the securities and exchange commission : Assume that the Securities and Exchange Commission (SEC) has a rule that it will enforce statutory provisions prohibiting insider trading only when the insiders make monetary profits for themselves. The brokerage firm challenges the rule in an action..

What amount will be in the account in 20 years : Future value. Sandra wants to deposit $100 each year for her son. If she places it in a savings account that pays 5%, what amount will be in the account in 20 years?

Defendants interference with the plaintiffs property : Calabresi and Melamed argue that when there are a few obstacles to cooperation, the more efficient remedy is to enjoin the defendant’s interference with the plaintiff’s property. In contrast, when there are significant obstacles to cooperation, the m..

Find the short run equilibrium output : Let's assume the following information for an economy. C=10000+0.6Y I=2000 G=5000 X=600 M=400 [All the notations are standard as discussed in the class]. Find the size of the multiplier in this economy.

Demand is normally distributed with a standard deviation : The manager of the Quick Stop convenience store (which never closes) sells 24 six packs of Fizzy soda each day. Order costs are $8.00 per order, and Fizzy soda costs $4.00 per six-pack. Holding costs are $1 per six pack. Orders arrive five days from ..

Complete the scoring model : Complete the scoring model. Show all your work. Tell which project you would pick first, second, third and last. How confident are you with each choice? If you lack confidence regarding any of your choices, what would you prefer to do about it?

Abundant with natural and human resources : Africa is abundant with natural and human resources, but who is/are benefiting from these most? Is free enterprise economy prevalent there yet? Is the Western aid serving its purpose? Is Africa attractive to foreign direct investment? How effective a..

Department employees spreadsheet database presentations : You have the responsibility to manage software training for Sales, Accounting, and Operations Department workers in your organization. You have surveyed the workers to get a feel for the amounts of time spent using various packages, and the results a..

Minimizes average ordering-carrying costs : You just computed the EOQ for an inventory item using the (Q,R) system, and your answer is Q = 315 units. The item in question comes in boxes of 100, so you will need to round your answer. Which of the following presents the more valid logic: Round t..

User Account

All Pages