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

Do whole foods markets mission and vision, Do Whole Foods Markets mission/v...

Do Whole Foods Markets mission/vision and the core values as presented in cases Exhibit 1 and 3 really matter? Are they real or just cosmetic window dressing? What evidence can you

Explain various types of media that attracted your attention, List five adv...

List five advertisements from various types of media that attracted your attention. Discuss the characteristics that determined your selection

Explain multinational business and the role of corruption, I am brainstormi...

I am brainstorming ideas and topics for possible use to launch my dissertation for my PhD in management. My current topic under consideration is: Multinational business and the rol

Explain mass customization and personalization, How can company use mass cu...

How can company use mass customization and personalization to decrease buyer power?

Identify the most vital factors in each perspective, Summarize the classica...

Summarize the classical, behavioural and quantitative perspectives on management Identify the most important factors in each perspective

Explain a jet engine has ten components in series, A jet engine has ten com...

A jet engine has ten components in series. The average reliability of each component is 0.998. What is the reliability of the engine? (Round your answer to 3 decimal places, the

Supply chain operation, Please diagram a supply chain. I prefer that you d...

Please diagram a supply chain. I prefer that you diagram the supply chain of your company. However, some of you may wish to select another supply chain with which you are familia

Explain branding and packaging and labelling, First, visit a local retail s...

First, visit a local retail store and look at the brand names, package designs, and labels for various products. Choose one product that you think is a "good" example of these prod

Describe the concept of best practices, Discuss the concept of best practic...

Discuss the concept of best practices

Explain how are scheduling and productivity related, Scheduling techniques ...

Scheduling techniques are designed to disaggregate the master production schedule into time-phased daily or hourly activities. A detailed production schedule must include when and

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages