Terms of stock availability-what is the new safety stock

Assignment Help Operation Management

Reference no: EM131371136

Rady Computer Copr produces a 4 week supply of its PC model when stock on hand drops to 500 units. It takes 1 week to produce a batch of this PC model. Fatort order average 400 units per week, and the standard deviation of forecast errors is estimated at 125 units.

a) What level of customer service is Rady Computer providing to its distributors in terms of stock availability?

b) Rady computer wants to improve customer service to 90%

-What is the new safety stock?

- How will such an improvement affect the company's reorder policy (what is the new ROP)?

Reference no: EM131371136

Questions Cloud

Medicine that treats various autoimmune diseases : You were recently promoted to Vice President of Marketing for the pharmaceutical company that makes Humira, a medicine that treats various autoimmune diseases. It is an expensive, patent-protected medicine that is not always covered by insurance. You..

Are there large relative changes : Open the Trend + Season Forecasting template shown in Figure 12-13, used for monthly data and do a sensitivity analysis on this template. Change some of the values in the table and see how the forecasts change. Are there large relative changes?

How could you address the weakness in order to improve them : How could you address these weaknesses in order to improve them? What measures could you take to ensure this would improve the weaknesses?

Find a value x : If X is a normally distributed random variable with mean 120 and standard deviation 44, find a value x such that the probability that X will be less than x is 0.56.

Terms of stock availability-what is the new safety stock : Rady Computer Copr produces a 4 week supply of its PC model when stock on hand drops to 500 units. It takes 1 week to produce a batch of this PC model. Fatort order average 400 units per week, and the standard deviation of forecast errors is estimate..

Find a point of the distribution : For a normal random variable with mean 16.5 and standard deviation 0.8, find a point of the distribution such that there is a 0.85 probability that the value of the random variable will be above it.

Describe the substantive and procedural criminal law : Understanding American criminal law concepts is a necessity for a criminal justice major. Chapter 3 of the text is devoted to explaining the principles and concepts of substantive and procedural law under due process of the American criminal justi..

Find a point of the distribution : For a normal random variable with mean 19,500 and standard deviation 400, find a point of the distribution such that the probability that the random variable will exceed this value is 0.02.

Find two values of the normal random variable : Find two values of the normal random variable with mean 88 and standard deviation 5 lying symmetrically on either side of the mean and covering an area of 0.98 between them.

User Account

All Pages