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

Production efficiencies and reducing unit costs, A manufacturer concerned m...

A manufacturer concerned mainly with production efficiencies and reducing unit costs is known as Production oriented.

Explain what types of risks are inherent in a project, 1. What do each of t...

1. What do each of the letters in the SMART acronym stand for? 2. In your own words, describe what each piece of the SMART acronym means? 3. Why is the SMART acronym an impor

Explain business systems analysis, Subject: Business Systems Analysis. Assi...

Subject: Business Systems Analysis. Assignment 4 Using the book 'Essentials of System Analysis and Design, 4th Edition Read the Hoosier Burger scenario on page 199 in Chapter 6 of

Explain what is the expected return of, Assume that you have $165,00 invest...

Assume that you have $165,00 invested in stock that is returning 11.50%,$85,000 invested in a stock is returning 22.75% and $235,000 invested in a stock that is returning 10.25%. W

Operation Management, what are the factors that affect productivity

what are the factors that affect productivity

Explain why is following up important with participants, Why is following u...

Why is following up important with participants who did not show up for their scheduled participation in your research?

Consider a layout decision in an organisation, Consider a layout decision w...

Consider a layout decision which has been made in your own organisation. How was the layout devised? What were the key issues?

Explain what are the hr maturity levels, Provide a broad description of the...

Provide a broad description of the value of understanding the strategic challenges and opportunities facing the business organization today What are the elements for Developing

Policy Interview, It is important for students, as they progress through th...

It is important for students, as they progress through this program, to learn from those currently working in health care. For this assignment, students will interview a health car

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