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 ambrose undergoes a restructuring, Marta is 57 and has been a store...

Marta is 57 and has been a store manager for Ambrose & Company for 10 years. Ambrose & Company is a retail store for fashion forward women. Ambrose undergoes a restructuring and re

Explain early european explorations of the americas, Need information on th...

Need information on this; did not receive my textbook as of yet European Explorations Debate the pros and cons of the early European explorations of the Americas. Should thes

Product layout - process design, Product Layout - process design Where...

Product Layout - process design Where the volume of output is high, as in large-batch and continuous operations, it becomes economically viable to lay out the processes conti

Illustrate the examples of the inventory control systems, Illustrate the ex...

Illustrate the examples of the inventory control systems? Examples of inventory control systems Reorder level systems: When the current stock level decreased below a

Explain graphic project report used in project management, Which of the fol...

Which of the following is a graphic project report used in project management?

Describe american business management, Why has there been (and is still) su...

Why has there been (and is still) such strong opposition to the trade union movement by American business management?

Define the evolution of leadership theory, Discuss the evolution of leaders...

Discuss the evolution of leadership theory from "Trait Theory" to "Behaviour Theory" to "Contingency Theory "Give an example of contemporary Leadership Theory.

What area of human services do you find the most interesting, There are a w...

There are a wide variety of exciting and interactive professions in the field of human services. As demonstrated in the video below and through your reading, do you think that musi

Calculate mape for each data set, DO different forecasting techniques (F1 a...

DO different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: PREDICTED DEMAN

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