Process of developing an inventory control system

Assignment Help Operation Management

Reference no: EM131708345

The Seldom Seen Ranch in Muckinfut, Texas, is in the process of developing an inventory control system for purchasing hay that will cope with Texas-size uncertainty. Seldom Seen foreman Horace Cints prepared the following information on Seldom Seen’s hay use:

Average demand during lead time = 1,010 bales

Lead time = 1 month

Economic order quantity = 2,550 bales

Forecast interval = 1 month

Mean absolute deviation of forecast error = 42 bales

Desired probability of stocking out = 0.10

a. How much safety stock will be required?

b. What’s the reorder point?

c. What’s the customer service level for this policy?

d. What decision rule should Horace Cints use in ordering hay, assuming constant hay usage throughout the year?

Reference no: EM131708345

Questions Cloud

Discuss and evaluate how child is doing in school : There is a CD-ROM program which now lets parents test their child's IQ and to evaluate how their child is doing in school

Difference-worldwide versus territorial approach : Worldwide Versus Territorial Approach. Nations typically structure their tax systems along one of two basic approaches.

Determining tax policy on foreign source income : What are a country's objectives when determining tax policy on foreign source income?

Describe the russian tax laws : Your company has a subsidiary in Russia, where tax evasion is a fine art. Discuss whether you should comply with Russian tax laws or violate the laws.

Process of developing an inventory control system : Texas, is in the process of developing an inventory control system for purchasing hay that will cope with Texas-size uncertainty.

Discuss typical family photo albums : why are Mann's photographs of her family different from typical family photo albums

What is a value-added tax : Although the value-added tax has been proposed numerous times, the United States has never adopted one. Why do you think the United States is so negative.

Describe a way that a particular behavior might be addressed : Select one common punishment you have seen and describe a way that a particular behavior might be addressed without the use of punishment.

What do you think about organisation leadership : To bear the pressure and face the challenges, workers/professionals need to be flexible and able to adjust to the changing conditions. What do you think about

User Account

All Pages