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

Described in the initial kickoff meeting for a project, Which of the follow...

Which of the following would be the first item to be discussed in the initial kickoff meeting for a project? Answer Understanding of the requirements Understanding of the

Explain organization culture importance to business success, Describe organ...

Describe organization culture. Provide a definition and explanation of its importance to business success?

Explain hrm role in the international context, 1. Compare the issue(s) face...

1. Compare the issue(s) faced with the staffing approaches to one of a larger company. 2. Analyze the complexity of the HRM role in the international context. 3. Compare the

Describe job openings in advertising in a global scale, Compare local Ohio ...

Compare local Ohio advertising jobs to job openings in advertising in a global scale sumerize there result.

Explain what are the challenges associated with erp system, Research ERP sy...

Research ERP systems by visiting the ERP company provider website of your choice (i.e., SAP, Ellucian, Oracle, Peoplesoft, Microsoft, Workday, etc.) Write an essay of between 750-1

Explain why is forecasting important for an organization, Why is forecastin...

Why is forecasting important for an organization? Which company do you believe to be successful at forecasting and why?

Ghant for Inventory Control, Hello! I need some help creating a ghant shed...

Hello! I need some help creating a ghant shedule for silo bins. I am harvesting, and I have large grain bins which will be filled depending on how fast we harvest. I also need to

Explain use debt financing, If you decide to use debt financing, which kind...

If you decide to use debt financing, which kind of loan, fixed-rate or variable-rate, would you prefer? Why? If you decide to use equity financing, where would you find equity f

, What happens if balance doesn’t exis

What happens if balance doesn’t exist

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