What level of safety stock should be maintained

Assignment Help Strategic Management

Reference no: EM131926730

Question: Arms of Steel is an organization that sells weight training sets. The carrying cost for the AS1 model is $5 per set per year. To meet demand, Arms of Steel orders large quantities of AS1 seven times a year. The stockout cost for AS1 is estimated to be $50 per set. Over the past several years, Arms of Steel has observed the following demand during the lead time for AS1:

The reorder point for AS1 is 60 units. What level of safety stock should be maintained for the AS1 model?

Reference no: EM131926730

Questions Cloud

Find the value of the account after 35 years : The account earns interest at a nominal annual interest rate of 8%, with interest being credited monthly.

Elimination considering both mechanical and chemical aspects : Trace the process of this mealy the G.I tract from ingestion to elimination considering both mechanical and chemical aspects.

Should chandler manufacturing order pumps : Chandler Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It costs Chandler Manufacturing $40 to place an order.

What is their liquidity requirement for the coming year : They will need $50,000 within the next year to make a down payment for a house purchase. What is their liquidity requirement for the coming year?

What level of safety stock should be maintained : Arms of Steel is an organization that sells weight training sets. The carrying cost for the AS1 model is $5 per set per year.

Enzyme ribulose bisphosphate carboxylase : The enzyme ribulose bisphosphate carboxylase (Rubisco) normally adds carbon dioxide to ribulose 1,5-bisphosphate.

What is your estimate of the current share price : Investors require 15% return on the company stock. The tax rate is 40%. What is your estimate of the current share price?

Grad cylinder contains an aqueous solution of soil : A 1000ml grad cylinder contains an aqueous solution of soil. You notice three distinct layers after the solution was shaken and allowed to sit for 2 days

What safety stock level do you recommend : Victoria Blunt is in charge of maintaining hospital supplies at Mercy Hospital. During the past year, the mean lead time demand for bandage BX-5 was 600.

User Account

All Pages