To which situation does this fit and what should the rop be

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Reference no: EM131921766

Problem

Furnco builds and sells secretarial chairs. Every chair model requires exactly 8 specialty fasteners that they get from a supplier.

Over the last five years, Furnco has produced 1500 chairs and expects to produce that same quantity over the foreseeable future (assume 250 working days per year).

Unfortunately, the fastener is only made by one supplier and that supplier has other customers; they have provided the following information as to when an order would be delivered:

x-Day Delivery Probability

1 0.05

2 0.10

3 0.40

4 0.25

5 0.20

To which situation does this fit and what should the ROP be?

Reference no: EM131921766

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