Describe what is the reorder point, Operation Management

Assignment Help:

The injection moulding department of a company that operates 24x7 uses an average of 20 gallons of special lubricant per day. It takes two weeks for an order of lubricant to be delivered.

a. If safety stock is enough for two days, what is the reorder point?

b. If the usage of lubricant is normally distributed, with a standard deviation of 5 gallons per day and the company wants a service level of 87%, what is the reorder point?


Related Discussions:- Describe what is the reorder point

Make a performance appraisal form for a position, Design a performance appr...

Design a performance appraisal form for a position or targeted job for which you have some first-hand knowledge. First: be clear about the purpose of the assessment process: i.e.,

Explain the advise to manager to take advantage of the offer, A manager rec...

A manager receives a forecast for next year. Demand is projected to be 580 units for the first half of the year and 930 units for the second half. The monthly holding cost is $2 pe

Explain it is important that lean six sigma efforts, It is important that L...

It is important that Lean Six Sigma efforts be linked specifically to strategic goals of the organization.

What protected in a bia plan, Select an organization and discuss what type ...

Select an organization and discuss what type of information should be protected in a BIA plan. How would you ensure protection of the confidentiality of such information and preven

Explain coupon rate with semi-annual coupon payments, Genny, Inc. bonds hav...

Genny, Inc. bonds have a 9% coupon rate with semi-annual coupon payments. They have 9 1/2 years to maturity and a par value of $1,000. Compute the value of Genny's bonds if investo

Ethics, An airplane manufacturer has spent a great deal of money developing...

An airplane manufacturer has spent a great deal of money developing a new airplane. The company badly needs cash because it is financially overextended. If it does not get large or

Meaning and definition of production management, Meaning and Definition of ...

Meaning and Definition of Production Management Production management is a stream of management that is associated to the production function. Production might be termed to as th

List countries that lead in export and import of merchandise, The WTO's Int...

The WTO's International Trade Statistics is an annual report that provides comprehensive, comparable, and updated statistics on trade in merchandise and commercial services. This r

Define importance of training and education, Define importance of Training ...

Define importance of Training and Education. Importance of Training and Education: Training and education bring employees to a standard whether they can carry out industrial

Why knowledge is vital supervisor''s tactical planning, Why should a first-...

Why should a first-line supervisor understand the organization's objectives? Why is this knowledge important to the supervisor's tactical planning?

Write Your Message!

Captcha
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