Reference no: EM133617044
Question: The operations manager at J. Hansen Enterprises, Inc. has a historical sample of demand during the lead-time that is normally distributed. She found that the average daily demand is 70 units and the standard deviation of daily demand is 20 units. Lead time is a constant of 3 days.
USE EXCEL to answer the following questions based on the above data (provide all excel steps and provide excel outputs:
a) What is the safety stock at a cycle service level of 95%?
b) What is the reorder point (ROP) to meet a 95% cycle service level?
c) If the reorder point is 250, what is the cycle service level (CSL)?
d) What is the safety stock at a cycle service level of 90% if the manager utilizes a periodic review model with T = 4 days?
e) What is the safety stock if the lead-time has a mean of 3 days and a standard deviation of 1 day? Use a CSL of 0.95
f) Assume that there is no demand uncertainty, but only supply uncertainty as noted in # 5 above exists. Daily demand is 70 units. What is the safety stock at CSL of 0.95?
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