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

Would this need cause you to turn down this franchise, The franchise fee is...

The franchise fee is %u201Cthe one-time payment made to become a franchisee%u201D (Hatten, 2009, p. 142). Hatten also stated that %u201Csome agreements require you to have a percen

Linear programing, Ask question #Minimum 100 words acceptNas food produces ...

Ask question #Minimum 100 words acceptNas food produces to kinds of popular dark chocolate bars. the banana and coffee. the banana bar costs 0.22 to make and sells of 0.35, where a

Inventory management, The injection molding department of a company uses an...

The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 ga

Explain the common grounds for discharge and the procedural, Describe the c...

Describe the common grounds for discharge and the procedural requirements that are outlined in many collective bargaining agreements. State why the following are important when the

What does operations function contribute to business, 1. What does the oper...

1. What does the operations function contribute to the business? Answer: The answer must be that the operations function, whether it be to manufacture products or provide servi

Explain which theory best explains leadership, Which theory best explains l...

Which theory best explains leadership? Why?

Explain which dimensions are presented in morgans model, Which three dimens...

Which three dimensions are presented in Morgan's model of IHRM? a) Types of employees, countries and industries b) Types of employees, countries and HR activities c) Types

Explain incurring liability under the equal pay act, Jill and Seth, recent ...

Jill and Seth, recent graduates, were hired as computer analysts for HRJ Enterprises. In a conversation over lunch, Jill discovered that Seth's salary was 15% higher than hers. Ass

Scope of job design - process design, Scope of Job Design - Process Design ...

Scope of Job Design - Process Design When designing any job, three requirements must be met simultaneously: technical feasibility, economic feasibility and behavioural feasibi

Describe your rationale beneficial to a single franchise, "Firehouse Subs",...

"Firehouse Subs", determine which of the THREE OPTIONS executives are considering would be most beneficial to a single franchise owner. Explain your rationale.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages