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Your firm is planning to introduce a new product line. Your task is to determine the inventory implications of the new product. The typical product will ship an average of 20 units per day from the firm’s central DC. Historical sales patterns indicate that the standard deviation of daily sales should be approximately 3. The typical performance cycle for comparable products has been a mean of 7 days and a standard deviation of 2.
a. Assuming a replenishment quantity from the plant of 200 units, what are the safety stock and resulting average inventory for a 95 percent case fill rate?
b. What are the inventory implications (safety stock and average inventory) of increasing the case fill rate objective to 99 percent?
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
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An analysis of the holding costs, including the appropriate annual holding cost rate.
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Ccompare the effectiveness of different leadership styles in different organizations
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