Optimal quantity of safety stock which minimizes expected

Assignment Help Operation Management

Reference no: EM132302587

Authentic Thai rattan chairs are delivered to Gary? Schwartz's chain of retail? stores, called The Kathmandu? Shop, once a year. The reorder? point, without safety? stock, is 200 chairs. Carrying cost is ?$40 per unit per? year, and the cost of a stockout is ?$60 per chair per year. Given the following demand probabilities during the lead? time, how much safety stock should be? carried?

Demand During Lead Time Probability 0 0.2 100 0.2 200 0.2 300 0.2 400 0.2 The optimal quantity of safety stock which minimizes expected total cost is nothing units ?(enter your response as a whole? number).

Reference no: EM132302587

Questions Cloud

Work or school or in life that requires change : Identify a problem at work or school or in life that requires change. Applying Kotter's Eight Steps for Leading Organizational Change, draft a plan for driving

Can corporations create chips to control employees minds : Write a critical essay on the topic, “Can corporations create chips to control their employees' minds?”

Problem statement concerning an issue in workplace : For this assignment, formulate a general workplace problem statement concerning an issue in a workplace.

What would the advantages and disadvantages of ecomomies be : Suppose that all economies in the world agreed to use a single currency that would be managed by an independent organization. What would the advantages.

Optimal quantity of safety stock which minimizes expected : The optimal quantity of safety stock which minimizes expected total cost is nothing units ?(enter your response as a whole? number).

What are the pros and cons of tariffs : Write a five page essay, using a minimum of three academic references from the CSU online library and proper APA formatting on the following topic.

What are some examples of training in work groups : How do you build trust and familiarity among team members? What are some examples of training in work groups?

Why is a business plan important : In PowerPoint, prepare an 7 - 10 slide presentation on one of the provided topics. Your presentation should include: A title slide, an agenda slide.

Write an e-mail message to alicia rodriguez : As the manager of Reprographic Services, write an e-mail message to Alicia Rodriguez, manager, Technical Services.

User Account

All Pages