What will be the annual cost of holding safety stock

Assignment Help Operation Management

Reference no: EM13957913

A firm experience demand with a mean of 100 units per day. Lead time demand is normally distributed with a mean of 1000 unites and a standard deviation of 200 units. It cost $6 to hold one unit for one year. If the firm wants to meet 90% of all demand on time, what will be the annual cost of holding safety stock? -assume that each order costs $50.

Reference no: EM13957913

Questions Cloud

Difference between functionalist and conflict perspectives : What is the largest difference between Functionalist and Conflict perspectives and the Interactionist perspective

What is the probability the jury decides to convict : For both the Gamma and Beta distribution, find the value of x that maximizes the density function. When is there just one local maximum?

Determine the point estimate : Determine the point estimate, then construct the 95%con?dence interval for µ7 = the average attitude toward Springdale Mall. What is the maximum likely error in the point estimate of the population mean?

Write a key concept about the given article : Write a one page key concept (key point) about the article "Classifying Services to Gain Strategic Marketing Insights" by Christopher H. Lovelock.

What will be the annual cost of holding safety stock : A firm experience demand with a mean of 100 units per day. Lead time demand is normally distributed with a mean of 1000 unites and a standard deviation of 200 units. It cost $6 to hold one unit for one year. If the firm wants to meet 90% of all deman..

Scope of his employment in each of these situations : John drives a truck as an employee for Quik Delivery, Inc. Would John be acting outside the scope of his employment in each of these situations?

How is momentum conserved : I would assume there should be a linear force on the magnet in the other direction, but the magnetic field caused by the current in the wire should only create a torque on the magnet. So how is momentum conserved?

Do you agree with the court decision : Clinton v City of New York: Do you agree with the court's decision? Why would the president not want to veto a bill that has a rider they prefer removed

How might the management team use formulas : Here's the scenario. You have just been hired to work in a start-up international company that is Miami-based. You are on the company development team to help determine which software to purchase for doing day-to-day calculations. Describe how you wo..

User Account

All Pages