What will new service probability be and reorder point be

Assignment Help Operation Management

Reference no: EM13965804

Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service probability, what must the reorder point be? Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be?

Reference no: EM13965804

Questions Cloud

Customer buying criteria-credit terms and awareness : Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment's customers, which of these products was the most competitive at the end of last year?

Discuss the single most interesting or surprising : Discuss the single most interesting or surprising thing you learned, as well as what made it so. If you were to speak with a friend considering taking this course, describe how would you “sell” it to him or her. Explain your rationale.

What does it mean to succeed in school : There are all kinds of schools; even college offers many different ways of learning. What does it mean to succeed in school? What does it mean to fail?

Assessment of the status of coal in the us coal : In this assignment you will write a 1-2 page, (500 to 1000 word) assessment of the status of coal in the US. Coal is still an important resource but it has become less so

What will new service probability be and reorder point be : Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per ..

Calculate the principal amount : Calculate the principal amount, interest, and annuity to be paid in each of the periods, as well as the total amount of interest charged by the bank.

Calculate how much project needs at the beginning : Calculate how much project needs at the beginning of the second year that would be necessary to cover its expected expenditures.

Describes performance-related pay : Why do you think merit pay has so far failed to lead to improvements in student perfromance? Merit pay is a term that describes performance-related pay, most frequently in the context of education. It provides bonuses for workers who perform their jo..

What must the vibrating length of the wire be : What is the speed v of a wave traveling down such a wire if the wire is stretched to its breaking point? Express the speed of the wave numerically, in meters per second, to the nearest integer.

User Account

All Pages