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 vmi agreement, Why is information technology such an important elem...

Why is information technology such an important element when entering into a VMI agreement? Explain using examples from Eka Chemicals and Interfast.

Explain role in establishing a canadidate''s brand, How does the use of mus...

How does the use of music in political play a role in establishing a canadidate's brand?

Explain what kind of warning signals would you like, 1. What kind of warnin...

1. What kind of warning signals would you like fed back from PAC to MRP? 2. Lead times are sometimes called rubbery. What accounts for this concept of elasticity in lead times?

Explain a production manager at a contour manufacturing, A production manag...

A production manager at a Contour Manufacturing plant has inspected the number of defective plastic molds in five random samples of 30 observations each. Following are the number o

Explain what issues would a judge decide, Fun Products, Inc. is in the busi...

Fun Products, Inc. is in the business of designing computer games. At the end of a particularly successful year, company management decided to throw a celebration party at which it

Product redesign, factors that influence redesign process

factors that influence redesign process

Explain what is the maximized profit, Riverside Oil Company in eastern Kent...

Riverside Oil Company in eastern Kentucky produces 3 different grades of gasoline. They are regular, premium, and supreme grades. Each barrel of regular grade sells for $82 while p

Two handed process chart and multiple activity charts, Two Handed Process C...

Two Handed Process Chart and Multiple Activity Charts Two-handed process chart  For fixed-position manual processes such as the assembly of small devices, this type of ch

Determine the appropriate sample size, Determine the Appropriate Sample Siz...

Determine the Appropriate Sample Size The following work sampling data was collected from observing a retail assistant:  Activity

Compute the operating characteristics of interest, An urn contains nine whi...

An urn contains nine white balls and 11 black balls. A ball is drawn and replaced. If the ball is white your opponent pays you 25 cents. If it is black you pay him 25 cents. You ha

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