Demand probabilities during the lead time

Assignment Help Business Economics

Reference no: EM13770245

Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without stock, is 200 chairs. Carrying cost is $40 per unit per year, and cost of a stock out is $70 per chair per year. Given the demand probabilities during the lead time, how much safety should be carried? DEMAND DURING LEAD TIME PROBABILITY

0 0.2

100 0.2

200 0.2

300 0.2

400 0.2

Reference no: EM13770245

Questions Cloud

Ecplain this seemingly counter intuitive behavior of price : Due to competition among firms, markets that have more firms usually have lower prices. However a study by two economists in 92 metropolitan markets in the United States found a different result for the pricing of the service of the primary care phys..

What best practices can you derive from the company : Strategy Execution: Building the Capability to Execute Strategy. Summarize the company's strategic plan based on its internal resources, capabilities, and structure. Be sure to answer the following questions:How do the company's hiring and training p..

Discretionary and non discretionary fiscal policy : Distinguish between discretionary and nondiscretionary fiscal policy. Which is most effective at combating unemployment? Which is most compatible with a "free" market?

Write a documented argument about drugs : Write a documented argument about drugs.

Demand probabilities during the lead time : Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without stock, is 200 chairs. Carrying cost is $40 per unit per year, and cost of a stock out is $70 per ..

Are these employees behaving ethically : And because here job requires her to be online all the time, she has plenty of opportunity to stay in touch with her friends by g-chatting, tweeting, and checking Facebook updates. However, she is shocked that one of her colleagues takes paper hom..

First printing has contracts with legal firms : First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 8,500 pages of documents. The lead time for paper delivery is normally distributed with a mean of 2 days and a standard d..

What is the companys comparative advantage : Describe the company - what is the companys comparative advantage in the global marketplace?

Write an essay about the american dream : Write an essay about the American dream. TASK: Enter into the conversation on any .pect of -The American Dream."

User Account

All Pages