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

Types of dispatching, Types of Dispatching Dispatching may be centralize...

Types of Dispatching Dispatching may be centralized or decentralized. Centralized dispatching refers to the instructions issued from the central dispatching section directly

Qualitative and quantitative justification, 1.  Maggie Company produces a l...

1.  Maggie Company produces a light fixture with the following unit costs:   Direct Materials: $2 Direct Labour: $2 Variable Cost: $3 Fixed Cost: $2 UNIT TOTAL COST: $9   The

Elements, what are the elements of production forecasting?

what are the elements of production forecasting?

Explain cutting edge or don''t have a lot of precedents, In what ways do yo...

In what ways do you think that scoping projects that are cutting edge or don't have a lot of precedents is a problem, and how do you think a project manager can address this

Plant location evaluation methods.., i need calculated examples using the m...

i need calculated examples using the methods of plant location evaluation.how are they calculated?

Layouts of supermarkets, pick a supermarket of your choice, observe the lay...

pick a supermarket of your choice, observe the layout and why the layout is like that

Explain increase retention of employees, If you became the new manager at r...

If you became the new manager at restaurant with high employee turnover, what actions would you take to increase retention of employees?

Explain marketing research process, Discuss the six steps in the Marketing ...

Discuss the six steps in the Marketing Research process and relate to any company/product/service that you know or are familiar with.

Explain objectives for a crm solution be, Once the organization understands...

Once the organization understands its customer and its market, it can now move on to planning, developing, and implementing a CRM solution. What would some of your objectives for a

What are the disadvantages of the chase demand strategies, What are the dis...

What are the disadvantages of the chase demand strategies? The disadvantages of the chase demand strategies are as illustrated below: a. Over reliance onto flexible staff th

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