What safety stock level do you recommend for bx-5

Assignment Help Business Management
Reference no: EM132075550

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. Furthermore, the standard deviation for BX-5 was 70. Ms. Blunt would like to maintain a 95% service level.

(a) What safety stock level do you recommend for BX-5?

(b) Victoria has just been severely chastised for her inventory policy. Dwight Seymour, her boss, believes that the service level should be 99%. Compute the safety stock levels for a 99% service level.

(c) Victoria knows that the carrying cost of BX-5 is $0.50 per unit per year. Compute the carrying cost associated with 95% and 99% service levels.

Reference no: EM132075550

Questions Cloud

Cost to set up the production process : Blaine Abrams is the owner of a small company that produces electric scissors used to cut fabric.
Inventory control manager for raydex : Carter Cohen, inventory control manager for Raydex, receives wheel bearings from Wheel & Gears, a small producer of metal parts.
Should chandler manufacturing order 200 pumps : Chandler Manufacturing can get a 3% discount on the cost of the pumps. Should Chandler Manufacturing order 200 pumps at a time and take the 3% discount?
Creating simple application that gather personal information : Create a simple application that gathers the following personal information. Use a class named "Person" that holds the properties above.
What safety stock level do you recommend for bx-5 : Ms. Blunt would like to maintain a 95% service level. (a) What safety stock level do you recommend for BX-5?
Discuss project cost benefit analysis : software consultants appointed to shoulder the system analysis responsibilities in, Global Business Systems in the project outlined in the case study
What is the optimal order quantity : (a) What is the optimal order quantity? (b) Top-Grade is offering a new shipping option. When an order is placed, Top-Grade will ship one-third of the order
What is the appropriate rop : How many drives should be carried as safety stock? What is the appropriate ROP?
Write a paper on group policies : Group Policies: Write a 3 paragraph paper on Group policies. Explain what they are, how they can be used, and what their strenghts and weaknesses are.

Reviews

Write a Review

Business Management Questions & Answers

  Firm profit-maximizing level of output

The firm estimates the probability of the new regulation being enforced is 0.5. Find the firm's profit-maximizing level of output. Round your answer to one decimal.

  Distinction between the short run and the long run

1. What is the distinction between the short run and the long run? In reality, does a company operate in the short run or in the long run? How do you know? Is it a reasonable distinction to have for a company?

  Discuss difference between a temptation and ethical dilemma

Discuss the difference between a temptation and an ethical dilemma in the context of an experience you have had, and describe how you resolved the matter.

  Why you think major information security regulations require

Why do you think all major information security regulations require a written information security policy? Do you agree? Explain your opinion using your words.

  Improving operational excellence

A Conference Board study found that CEOs identified the top global challenges they face as (1) improving human capital within their organizations

  Makes use of the em spectrum

Choose a technology device that makes use of the EM Spectrum. Next explain how this device works using terminology learned in this chapter

  Encourages employee effectiveness

The type of culture your department exhibits, and why it encourages employee effectiveness

  Distinct form in the argument

A fallacy is an error in reasoning that takes the place of the real support needed in an argument.

  Isocost and isoquant if the unit of capital increase

What happen to a isocost and isoquant if the unit of capital increase from 4 to 6 while the unit of labor remain constant on 6?

  Discuss how this will impact the organizations diversity

Discuss how this will impact the organizations diversity training - what will need to change?

  Consulting services to discuss her concerns

Your consulting services have been requested by the CEO of a Fortune 500 company.

  Determining span of control and degree of formalization

Determining span of control, reporting relationships, and degree of formalization and specialization are all elements of which function of how leaders shape organizational culture?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd