What is the safety stock and reorder point

Assignment Help Business Management

Reference no: EM131862885

Question: The daily demand of a product can be specified by a normal distribution. The average daily demand is 250 units with a standard deviation of 40 units. The order lead time for this product is also normally distributed with an average of 10 days and a standard deviation of 3 days. What is the safety stock and reorder point for a 95 percent in-stock probability?

Reference no: EM131862885

Questions Cloud

How your selected waste materials and fossil fuels affect : Explain how your selected waste materials and fossil fuels affect biological diversity in the environment.

Prepare an analysis to calculate the average cost of capital : Calculate the company's weighted average cost of capital. Use the dividend discount model. Show calculations in Microsoft Word.

What is the expectation as to when the call will be returned : If a customer service person indicates that they will get back to you about a complaint or whatever the case may be, what is the expectation.

Discuss the aspects of chemical flocculation process design : Discuss the aspects of a chemical flocculation process design that must be considered during the engineering process.

What is the safety stock and reorder point : The daily demand of a product can be specified by a normal distribution. The average daily demand is 250 units with a standard deviation of 40 units.

Discuss type of business organization to limit the liability : Using THREE of the seven factors as discussed in class (liability, taxation, financing, management, liquidity, formalities, and life of business).

Design a business card for you : Go to any of the on-line business card supply companies and use their design templates OR design your own. Take a screen shot of your design for submittal.

What is the setup time of the cutting process : A cutting machine takes 10 minutes to cut a piece of component for a product. After cutting 200 pieces, the machine takes 5 minutes to be recalibrated.

Write a business leter about the given organization : You work for a company1 whose mission is to offer advice to college students who are considering their career options.

User Account

All Pages