Find the cycle service level

Assignment Help Finance Basics

Reference no: EM1315835

Computing Re-order Quantity - Inventories for production cycle.

The home appliance department of a large department store is using a continuous review policy to control the replenishment of a particular model of radio. Daily demand for the radio is normally distributed, with a mean of 300 and a standard deviation of 100. The wholesaler can process a replenishment request in 2 days. The current replenishment policy is to order 1500 units when there are 750 units on hand.

1. What is the cycle service level that the store achieves with this policy?

2. What is the fill rate that the store achieves with this policy?

3. Suppose the store wants to adjust its reorder point from 750 to achieve a fill rate of 99.9%. What reorder point should it use?

Reference no: EM1315835

Questions Cloud

What is the length of the firm''s cash conversion cycle : What is the length of the firm's cash conversion cycle and What would happen to Saliford's cash conversion cycle if, on average, the length of time that products remain in inventory is shortened to 45 days?

Finding cost of equity by using capm and npv of the project : Finding Cost of Equity by using CAPM and NPV of the project with that rate - The parent's discount rate for Argentina is 9%. How should the project be financed? Justify your answer numerically.

Using the window setting to make a graph : Using the window setting to make a graph.

Cost of retained earnings based on discounted cash flow : Evaluate cost of equity, cost of retained earnings based on discounted cash flow, C A P M and Bond cost plus premium methods.

Find the cycle service level : Find the cycle service level that the store achieves with this policy and What is the fill rate that the store achieves with this policy?

What are the cost savings to each party : whereas Virgin can borrow dollars at 8% and pounds at 8.5% and What range of interest rates would make this swap attractive to both parties and what are the cost savings to each party?

Interest rate swaps on the borrowings : Computation of savings with Interest rate swaps on the borrowings - What range of interest rates would make this swap attractive to both parties?

Use mathematical induction to solve the equation : Use mathematical induction to solve the equation.

Interest rate swaps with no rate adjustments : Interest rate swaps with no rate adjustments - What swap transaction would accomplish this objective?

User Account

All Pages