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 compare and contrast utilitarianism with situationis, Compare and c...

Compare and contrast Utilitarianism with Situationism

Explain how would you make a needs assessment, Suppose you were conducting ...

Suppose you were conducting a marketing analysis for a new textbook about technology management. What would you need to know to identify a market segment? How would you make a need

Determine the process capability indices and p chart control, 1. If the des...

1. If the design tolerance limits for the process are 9.7/11.2, determine the process capability indices C p and C pk . Comment on the values obtained.  2. 1000 items produced

Explain organizations achieving competitive advantage, Discuss the influenc...

Discuss the influence of the four focus areas for HR professionals on solving HRM related issues associated with organizations achieving competitive advantage.

Explain challenge facing law enforcement agencies, Explain in detail the gr...

Explain in detail the greatest challenge facing law enforcement agencies in investigating exploitation, cyber stalking, and obscenity. Identify the specific challenges with overlap

Explain how much should the father deposit, On the day his son was born, a ...

On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th b

Sequencing., minimise the operation procedure

minimise the operation procedure

Explain occasional spills of fatigue and flu, You are a busy partner in a l...

You are a busy partner in a legal firm, and an experienced administrative assistant complains of continued headaches, drowsiness, dry throat, and occasional spills of fatigue and f

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