Safety stock of the common product

Assignment Help Business Management
Reference no: EM131297313

Home Depot manufactures and sells a screwdriver and drill set with two different packages to two big-box retailers. The manufacturing lead time is constant four weeks. The packaging is customized for each retailer and the two end-products are inventoried separately at the manufacturer's warehouse. Each retailer carries only the product customized for it. The two order-streams from the two retailers are identical, each with a mean of 5200 units per week and standard deviation of 3800 units. Home Depot wishes to provide a service level of 99.9%.

(a) Consider only one retailer and the inventory of this retailer's customized product at Home Depot. What should be the safety stock of this product? What should be the reorder point?

(b) If we assume that demand is constant, and the order size is 20000, what should be the reorder point for the setting described in (a)?

(c) Ignore (b) and get back to variable demand.. If two products are combined into one product with one common packaging and both retailers carry the same product, how much total safety stock of the common product should Home Depot carry?

(d) Compare the total safety stock Home Depot must carry in (a) and (c). Briefly (and qualitatively) point out any reasons why these two numbers are different.

Reference no: EM131297313

Questions Cloud

Describe the potential sources of funding : What type of data is necessary to determine whether you are meeting the project goals and objectives with respect to whether your participants or community improve over time? Is the data qualitative or quantitative in nature?
Historical values and ideologies of the country : Social justice has been defined in different ways, but the definitions usually include similar ideologies. As you study the concept of social justice, you will come across some of the following ideas:
Write paper on alliance supermarket and point-of-sale system : Write a 3-4 pages paper on Alliance Supermarket and Point-of-Sale (POS) Systems. Alliance Supermarkets has been using a point-of-sale (POS) system for some time to track its inventory.
Estimate the future cash flows of the company : Using the historical financial statements of Starwood (see attached excel file), estimate the future cash flows of the company using reasonable assumptions
Safety stock of the common product : Ignore (b) and get back to variable demand.. If two products are combined into one product with one common packaging and both retailers carry the same product, how much total safety stock of the common product should Home Depot carry?
Explore industry-specific effectiveness of some of methods : The President would like to explore the industry-specific effectiveness of some of the major methods of advertising listed Social Media, Web Pages, Billboards and TV Advertisement.
Changing her leadership style : Assess how Bloom might go about changing her leadership style. Take into consideration her personality traits, organizational values, emotional intelligence and the social leadership aspects of her role as leader. In short make her a new woman, ..
What is the building-blocks concept : What is the building-blocks concept? How is it applied to the handling of packaged goods? Discuss the four factors used in determining a product's freight classification.
Prepare a white paper to report your findings : Write a white paper to report your findings and to give your recommendations about which warehousing activities and systems your business should employ.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd