Safety stock and order point

Assignment Help Basic Statistics

Reference no: EM1391947

Bob Billy is an operations analyst for Dollar-Does-It stores based in Iva, SC. He is currently studying the order and stocking policies for top-selling toy. His analysis has indicated an almost constant lead time of 10 days. Bob calculated that the daily demand was normally distributed with a mean of 1,250 toys per day with a standard deviation (Ï?d) of 375 toys per day.

a. Compute the order point for the toy if the service level is specified at 90% during the lead time.

b. How much safety stock would Bob Billy carry?

Reference no: EM1391947

Questions Cloud

Compute surface to volume ratio of the muscle cell : The volume of the human oocyte in the previous difficulty is similar to that of the dorsal interosseous muscle cell in but their S/V ratios are very different.

Null hypothesis tested by the anova : In order to compare the mean charges for the three groups, the data will be subjected to an analysis of variance. Write the null hypothesis tested by the ANOVA.

Describe properties of normal distribution : Critically illustrate out the properties of a normal distribution. Explain why there are an infinite number of normal distributions.

Explain how data is dissimilar from information : Explain how data is dissimilar from information? Describe how information is dissimilar from knowledge? How knowledge dissimilar is from experience

Safety stock and order point : Bob Billy is an operations analyst for Dollar-Does-It stores based in Iva, SC. He is currently studying the order and stocking policies for top-selling toy.

Ranking the substances in order of ph : This is a kitchen activity and needs the use of a blender or you can boilthe cabbage instead, red cabbage and assorted foods and liquids.

Computing chance of investment return : Investment A has an expected return of $25 million and Investment B has an expected return of $5 million. Market risk analysts believe the standard deviation of the return from A is $10 million

Analyse potential pitfalls and solution in change management : Identifies potential issues and theoretical constructs for use in change management identification and implementation

Description of normal distribution and probability : A business finds the average cost required to complete a project is $416 with a standard deviation of $57. A sample of 36 project cost reports was selected at random.

User Account

All Pages