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1. Demand for Etched Impressions Wood products averages 40 units per day with a standard deviation of daily demand being 4. Lead time is 3 days. This IBC company strives for a 93% service level.
What is the Z-value for the company's desired service level? (Display your answer to two decimal places.)
What is the standard deviation of demand during the lead-time period? (Display your answer to two decimal places.)
How many units of wood should Etched Impressions carry for safety stock? (Displayyour answer to two decimal places.)
What is the appropriate reorder point for Etched Impressions? (Display your answer to two decimal places.)
2. G's Dairy is trying to determine how to manage their stock of raw milk. They have an average daily demand of 50 gallons per day, but it varies by about 5 gallons per day. Their lead time for receiving new milk is 3 days. They are striving for an 85% service level.
What should be their safety stock for raw milk? (Display your answer to two decimal places.)
What should be their reorder point? (Display your answer to two decimal places.)
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A company sells motherboards for personal computers. For quantities up through 25, the firm charges $350 per board; for quantities between 26 and 50,
Analyze and compare your two companies in terms of these items and how they are performing relative to each other and in general.
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