Explain what amount of safety stock is appropriate, Operation Management

Assignment Help:

Given this information:

Lead-time demand = 630 pounds

Standard deviation of lead time demand = 40 pounds (Assume normality.)

Acceptable stockout risk during lead time = 4 percent

a. What amount of safety stock is appropriate?

b. When should this item be reordered?

c. What risk of stockout would result from a decision not to have any safety stock?


Related Discussions:- Explain what amount of safety stock is appropriate

Explain benefits package related to your dream job, Design a compensation a...

Design a compensation and benefits package related to your dream job.

Explain sexual assault prevention and response, What impact do you think th...

What impact do you think that the DODs new Sexual Assault Prevention and Response (SAPR) program will have on the culture and the historic problems of sexual assault/harassment and

Distribution among between affect international businesses, How do differen...

How do differences in income levels and income distribution among nations affect international businesses?

Find loan payment than the lease payment, Sutton Corporation, which has a z...

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 bank loan to finance service equipment. The loan has an interest r

Explain economic order quantity or just-in-time, Complete additional invest...

Complete additional investigation on the JIT and EOQ models. Discuss which of the two inventory models is better and why: Economic Order Quantity or Just-in-Time?

Explain quality will be expected of health care providers, What tools and v...

What tools and value added quality will be expected of health care providers? What changes will health care providers need to make to be competitive and gain consumers and maintain

Mba program has a high emphasis on ethical decision, Why do you think the c...

Why do you think the capstone course for the MBA program has a heavy emphasis on ethical decision making?

Discuss implications for leadership, Implications for leadership and a lead...

Implications for leadership and a leader's relationship with follower

Explain monetary value on the social and the environmental, Can you put a m...

Can you put a monetary value on the social and the environmental benefits?

Straighten(seiton)&sustion(shitsuke), explain and give for examples hotels ...

explain and give for examples hotels services...how them service ?

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