Presume the restaurant operates 360 days per year, Operation Management

Assignment Help:

A fast-food restaurant buys hamburger buns from a national bakery supplier. The daily usage of buns at the restaurant is normally distributed with an average of 160 and standard deviation of 10. It takes 4 days for the supplier to deliver. The purchasing agent at the restaurant has established a 99.7% service level. Calculate: a) The Safety Stock and Reorder Point for the restaurant. b) The fast-food restaurant now considers ordering hamburger buns from a local bakery. To estimate its costs, the restaurant assumes now those buns are used at the (constant) rate of 100 per day and are purchased at $0.025 per bun. And it costs $1 for each order placed and the annual inventory holding cost per unit is 25% of the unit purchase cost. How much should be ordered (rounded to the nearest integer) each time to minimize the restaurant's total annual costs? And what is the length of order cycles (i.e. time between orders) in days? Assume the restaurant operates 360 days per year


Related Discussions:- Presume the restaurant operates 360 days per year

Explain the terms dependent demand and independent demand, Question: (a...

Question: (a) With reference to examples you are familiar with, explain the terms dependent demand and independent demand. (b) Materials requirement planning is a techniq

Discuss factors are vital for the success, Selecting the right projects ...

Selecting the right projects Selecting the right parteners Providing an effective leadership Discuss why these factors are vital for the success of international construct

#, what do you understand by "line balancing"? what happens if balance dose...

what do you understand by "line balancing"? what happens if balance dosen''t exist?

Explain organizational structure, Analyze the reason for the type of organi...

Analyze the reason for the type of organizational structure employed by the organization, and identify the key positions that support that organizational structure.

Explain the role of the hrm professional, How do these policies and practic...

How do these policies and practices align with Apple, Inc.'s legal compliance standards? If alignment is not present, how does this affect the role of the HRM prof

Explain yellow pages listed a funeral home under what, In 1980 the Yellow P...

In 1980 the Yellow Pages listed a Funeral Home under what

Explain lean approach to supply chain management, Does a Vendor Managed Inv...

Does a Vendor Managed Inventory system support a "lean" approach to supply chain management? Explain

Explain what is the capacity of the factory, Hickory Manufacturing Company ...

Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast demand 60 79 81 84 84 Currently

Explain case studies with ethnographic research, 1. What benefits can be ga...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

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