Determining statistical safety stock

Reference no: EM13115586

Question 1: If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?:

a) 8 units

b) 10 units

c) 16 units

d) 64 units

e) cannot be determined without lead time data

Question 2: A fabrication company wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00. The revenue generated by the units processed on these machines is $21 per unit. If the estimated output is 5000 units, which machine should be purchased?:

a) machine A

b) machine B

c) either machine A or machine B

d) no purchase because neither machine yields a profit at that volume

e) purchase both machines since they are both profitable

Please select the right answers and show explanation on how you have calculated it.

Reference no: EM13115586

Questions Cloud

Find probability for infinite number of contestants : As an illustration, if contestant 1 obtains a smaller value than contestants 2 and 3 but contestant 4 has a smaller value than contestant 1 (X4 n) as a function of n.

Which photoreceptor is responsible for viewing plate : Your family has gathered to celebrate. Identify the structures in the nervous system responsible per the questions on the worksheet.

Can a normal daughter have a color-blind father : In humans, normal color vision vs. color blindness is determined by alleles C (normal) and c (color-blind) at X linked chromosomes a. Can a normal daughter have a color-blind father?

How many stamens and pistils are in a shsta daisy : How many stamens and pistils are in a shsta daisy "leucanthemum x superbum" from the family Asteraceae?

Determining statistical safety stock : If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

Make a histogram for distribution of probabilities : What is the probability that 6 or more claims are made by males under 25? (C) What is the expected number of claims made by males under 25? What is the standard deviation of the distribution?

Find potential difference between initial and final points : Two parallel plates, separated by 0.20 m, are connected to a 12-V battery. An electron released 3) from rest at a location 0.10 m from the negative plate. When the electron arrives at a distance 0.050 m from the positive plate, what is the potenti..

How does bioremediation control levels of pollution : How does bioremediation control levels of pollution?

What is neutral theory of biodiversity : What causes are responsible for the dispersal of fish across coral reefs.

User Account

All Pages