Find the reorder point, The annual demand for a product is

Find the reorder point

Assignment Help Operation Management

Reference no: EM13104489

The annual demand for a product is 14,200 units. The weekly demand is 273 units with a standard deviation of 95 units. The cost to place an order is $32.00, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.

a.
Find the reorder point necessary to provide a 95 percent service probability. (Round your answer to the nearest whole number.)

b.
Suppose the production manager is asked to reduce the safety stock of this item by 45 percent. If she does so, what will the new service probability be? (Round your answer to 3 decimal places.)

Reference no: EM13104489

Questions Cloud

Confidence interval-problem and solution : For a sample of 36 students in a class the mean score in Mathematics is 72 with a standard deviation of 7. Find the 95% confidence interval for the mean score.

How fast is the electron moving : An electron is released from rest at the negative plate of a parallel plate capacitor. The charge per unit area on each plate is ? = 1.81 10-7 C/m2, and the plates are separated by a distance of 1.38 10-2 m. How fast is the electron moving just be..

Compute optimal production quantity for the card : Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.95 per card, and the cost of printing is $0.40 per card.

Constucting the confidence interval for mean : The following data values are a simple random sample from a population that's normally distributed with (symbol for variance) o2=4.0:

Find the reorder point : The annual demand for a product is 14,200 units. The weekly demand is 273 units with a standard deviation of 95 units. The cost to place an order is $32.00, and the time from ordering to receipt is four weeks.

Explain the communication issues : Drawing on hall's high and low context, describe some of the communication issues that might well arise when an arab company officer who hasvspent his career in the middle east is sent on temporary assignment.

Sample size-confidence intervals in statistical analysis : If a random sample of 10 people found that 9 were pro-life (i.e., 90%), while another random sample of 1000 people from the same population found that 550 were pro-life (i.e. 55%), which would you find to be more significant? Why?

Identifying five differential costs : You are a management analyst for XYZ aircraft manufacturing company. Your company is considering either to purchase or lease manufacturing equipment.

Define how much time passes before the ice starts to melt : An open container holds ice of mass 0.530 kg at a temperature of -15.7 Celsius . The mass of the container can be ignored. Heat is supplied to the container at the constant rate of 810J/minute.

User Account

All Pages