Standard deviation of demand during the protection interval

Assignment Help Operation Management

Reference no: EM13819497

Our bottling plant uses approximately 1000 plastic bottlesper day (normally distributed), while daily usage has a standard deviation of 70. Order lead time is 2 days (constant).Suppose I plan to instead set up a periodic review inventory system, and I will order this item every 7 days. There is still a 2 day lead time.

1. The "order up to" level T must cover what protection interval?

2. What is the average demand during the protection interval?

3. What is the standard deviation of demand during the protection interval?

4. Using this periodic review system, what order up to level (T) would result in 100 units of safety stock?

5. What is the predicted service level under this safety stock value?

6. What order up to level is needed to provide 99% predicted service level? How much safety stock is associated with this policy?

Reference no: EM13819497

Questions Cloud

How would the training session be conducted : You were tasked to provide training for a user group for a new ERP system that your organization is about to launch. Prepare two agendas; the first training is for the user group before the system “Go- live,” and the second agenda for the user group ..

Summarizing the details of the investment : Write a two to three (2-3) paragraph summary in which you: Create a chart summarizing the details of the investment for both Bob and Lisa. Explain the results in terms of time value of money.

Plan to construct and solve a decision tree : Use Tree Plan to construct and solve a decision tree to decide what to do - Replacing the expected payoffs with your utility values, to maximize your expected utility. Does the best course of action change?

Buys a pair of skis from outdoor outfitters : Neal, a twelve-year-old, buys a pair of skis from Outdoor Outfitters (OO), telling the salesperson that he has never been skiing but "really wants to do it." The salesperson urges Neal to take a lesson in the sport before attempting a run, but Neal i..

Standard deviation of demand during the protection interval : Our bottling plant uses approximately 1000 plastic bottlesper day (normally distributed), while daily usage has a standard deviation of 70. Order lead time is 2 days (constant).Suppose I plan to instead set up a periodic review inventory system, and ..

Describe the internal and external environments : Research and describe the internal and external environments of 2 to 3 real-world companies using an environmental scan. Determine what competitive advantages each company has and what strategies each company is using

Programming uml : programming uml

What role have women played in the development of science : What role have women played in the development of Science-Engineering and technology. How has technological change affected the roles of women and ideas of gender?

Marketing products and services internationally : It is a responsibility of the global firm to ascertain the level of importance of various aspects of culture. Companies’ operations need to recognize and adjust to the cultural environment. Name the four elements of culture and indicate why they are ..

User Account

All Pages