How reduce the safety stock, Operation Management

Assignment Help:

The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.

a. Find the reorder point necessary to provide a 98 percent service probability.

b. Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the new service probability be?


Related Discussions:- How reduce the safety stock

Explain what pay level does the efficiency wage predict, What pay level doe...

What pay level does the efficiency wage predict? Does the theory accurately predict organization behaviour? Why or why not

How maximize total advertising revenue, A local television station plans to...

A local television station plans to drop four Friday evening programs at the end of the season. Steve Botuchis, the station manager, developed a list of six potential replacement p

Describe factors affecting morale, Describe factors affecting morale. F...

Describe factors affecting morale. Factors that tend to lower or improve the worker morale are: 1. Job Factors - Nature of job, Fatigue and boredom related with the job,

Explain risk management, Risk management is exposure to the consequences of...

Risk management is exposure to the consequences of uncertainty culture, processes and structures directed towards the management of potential opportunities determining if risk is t

Through television marketing how do consumers select quality, Through telev...

Through television marketing how do consumers perceive different brands as being the best quality?

Explain the type of material handling systems, Describe the type of materia...

Describe the type of material handling systems used in warehouses?

Explain what is the evpi, State of nature decision ...

State of nature decision S1 S2 S3 D1 250 750 500 D2 300 -250

Design of products and services, the purpose of the design activity in comp...

the purpose of the design activity in companies is to come up with products/services which willsatisfy the needs of customers/clients. which one of the fololowing statements is inc

Explain problem of industrial marketing in india, Explain problem of indust...

Explain problem of industrial marketing in india.   Industrial market has all individuals and organisations which acquire goods and services into the production of other product

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