How much safety stock would you want on hand to ensure

Assignment Help Supply Chain Management

Reference no: EM13896852

Suppose you are a corporate buyer. One of your suppliers delivers a particular part in 12 days on average, with a standard deviation of 3. The daily usage averages 20 units per day with a standard deviation of 4. What is the standard deviation of demand during lead time? If you use a continuous review policy, how much safety stock would you want on hand to ensure at least 90 percent availability of the part while waiting for replenishment?

Reference no: EM13896852

Questions Cloud

What is first order thinking? what is second order thinking? : What is first order thinking? What is second order thinking?

What price should this monopoly charge to maximize profit : A monopolistic firm faces the following demand curve. What price should this monopoly charge to maximize its profit? What would be its equilibrium profit? What price should it charge if it were to maximize its revenue? What would be its profit if it ..

What is the profit maximizing price and quantity : Set up a table oe spreadsheet for output (Q) price (P) total revenue(TR),marginal revenue (MR) total cost (TC marginal cost (MC) average cost (AC) profit (P). Establish a range for Q from 0 to 1000 in increments of 100 (i.e, 0, 100, 200....1000). Wha..

Key differences between viruses and other malicious codes : Explain the key differences between viruses and other malicious codes. Identify at least three (3) different types of viruses, and describe the main differences between each one. Next, explain both the potential threat posed by viruses and other mali..

How much safety stock would you want on hand to ensure : If you use a continuous review policy, how much safety stock would you want on hand to ensure at least 90 percent availability of the part while waiting for replenishment?

Community response to environmental controversy : Using the Internet or a newspaper, locate an article about a controversial environmental issue in your community. Create a critical response from a legal perspective to that issue in the form of a letter on behalf of the community (In other words, pr..

What types of assets might a small business have : What types of assets might a small business have? What types of debts (liabilities) might a small business have? What does a current ratio measure, and how do you calculate it?

How will you manage the potential conflict? : How will you manage the potential conflict?

Were encouraged by changing social role of their product : In the 1990s, U.S. wine producers "were encouraged by the changing social role of their product." Specifically, the U.S. consumer had become much more attuned to wine. How did the growing acceptance of wine by consumers affect their indifference curv..

User Account

All Pages