How much safety inventory does sasktires currently carry

Assignment Help Supply Chain Management

Reference no: EM133449031

Case Study: The manager at SaskTires, a distributor of tires in Saskatchewan, uses a continuous review policy to manage inventory. The manager currently orders 10,000 tires when the inventory of tires drops to 6,000. Weekly demand for tires is normally distributed, with a mean of 2,000 and a standard deviation of 500. The replenishment lead time for tires is two weeks. Each tire costs SaskTires $40, and the company sells each tire for $80. SaskTires incurs an annual holding cost of 25 percent.

Questions:

How much safety inventory does SaskTires currently carry?
What is the cycle service level under the manager's current inventory policy?
What is the expected understock under the manager's current inventory policy?
What is the expected overstock under the manager's current inventory policy?
What is the optimal cycle service level based on the given information?
What is the optimal safety inventory level based on the given information?

Reference no: EM133449031

Questions Cloud

Explain and critique risk management frameworks of tesla : Identify, analyze, and develop tesla response plans to project risks in supply chain management. Describe the main risks of tesla to the effective delivery

What is optimal size of the production run for this module : What is the optimal size of the production run for this module? (Display your answer to the nearest whole number). Given your answer to the previous question

Potential to overrule roe v. wade : You are the deciding vote in a case that has the potential to overrule Roe v. Wade. It falls upon you to write the majority decision.

Research on the current trends on the supply chain processes : Research on the current trends on the Supply Chain Processes (SCP): Information Systems and Information Technology. Based upon your analysis

How much safety inventory does sasktires currently carry : How much safety inventory does SaskTires currently carry? What is the cycle service level under the manager's current inventory policy? What is the expected

How did the migration to suburban communities : How did the migration to suburban communities and the increase of automobile ownership impact one another?

Explain the concept of order qualifier : Explain (in detail) the concept of trade-off between the competitive dimensions of product flexibility and speed of delivery. Provide examples to support

Rewrite the bill of rights from the perspective : Rewrite the Bill of Rights from the perspective of someone who was left out. Take the actual text and make changes as you go.

Civil law and common law traditions : Understanding that Canada's legal system incorporates a number of elements of the Civil Law and Common Law traditions into a hybrid legal system

User Account

All Pages