Determine the amount of safety stock that would be needed

Assignment Help Operation Management
Reference no: EM13922310

Weekly demand for diesel fuel at a department of parks depot is 250 gallons. The depot operates 52 weeks a year. Weekly usage is normal and has a standard deviation of 14 gallons. Holding cost for the fuel is $1 a month, and it costs $20 in administrative time to submit an order for more fuel. It takes one-half week to receive a delivery of diesel fuel. Determine the amount of safety stock that would be needed if the manager wants

a. An annual service level of 98 percent. What is the implication of negative safety stock?

b. The expected number of units short per order cycle to be no more than five gallons.

Reference no: EM13922310

Questions Cloud

Explain the importance of ethical responsibility : How can managers please stakeholders while remaining ethical? Explain the importance of ethical responsibility.
Value common stock : When 100 shares of $10 par value Common Stock are issued at $23 per share, Additional paid-in Capital will:
Calculate the unit cost : Calculate the equivalent units for July.equivalent units Calculate the unit cost. Round your answer to the nearest cent.$ per unit
Excessive force a form of police misconduct : Excessive force is a form of police misconduct (or corruption). In 3 paragraphs, explain where the "line" should be drawn when "using the amount of force necessary to control a suspect" and what some would call "brutality." Please use outside res..
Determine the amount of safety stock that would be needed : Determine the amount of safety stock that would be needed if the manager wants An annual service level of 98 percent. What is the implication of negative safety stock?
What features might business owner want new website include : Compare and contrast available IT security solutions to address the needs you identified. What are the advantages and disadvantages to each interms of supporting the business owner's objectives?
The company can purchase the site : The company can purchase the site, construct the building, and purchase all store fixtures. The cost would be $1,861,700. An immediate down payment of $412,400 is required, and the remaining $1,449,300 would be paid off over 5 years at $361,500 per y..
When should the manager reorder each item : When should the manager reorder each item? Compute the order quantity for P34. Compute the order quantity for P35 if 110 units are on hand at the time the order is placed.
Describe three ethical mandates of jainism : Identify and describe three ethical mandates of Jainism. Then evaluate the benefits and risks of putting so much emphasis on asceticism. Make sure you use enough detail to support your answer.

Reviews

Write a Review

Operation Management Questions & Answers

  Write down a 700- to 1050-word paper in which you explain

identify an opportunity at your organization that would require a project. the project must include resources and a

  Why are dissatisfied employees not the least productive

why are dissatisfied employees not the least productive? Suggest some reasons why you think this relationship is not as strong as our intuition would have us think it is.

  Each constraint-feasible region and optimal solution

Use a graph to show each constraint, the feasible region, and optimal solution. Use the Algebraic Method to solve the problem. What is the optimal solution? Discuss the relationships in your final equations. Develop a spreadsheet and use Solver to fi..

  Determine disadvantages of buy american act

Determine two to four disadvantages of Buy American Act provides to small or large businesses that sell to the government. Speculate on why so many companies still sell to the government in spite of these disadvantages.

  Effectiveness and efficiency of the project team

You are the project manager of a large, virtual HR project. You want to improve the functioning of the project team. Which of the techniques below would not likely improve the effectiveness and efficiency of the project team?

  Which theory of leadership will help you understand

They tend to delegate responsibility to members of the in-group while with members of the out-group they lead by giving directives. Which theory of leadership will help you understand your observation.

  Jurisdiction of the national labor relations board

Was this matter within the jurisdiction of the National Labor Relations Board? Were Leiner's actions considered a protected activity under the National Labor Relations Act? How should the NLRB rule? Give your reasons

  Produce blasting powder used in guns and artillery

what kind of goals should you set for the company? Should you focus on finances, product development, or people? And should you have an overriding goal, or should you have separate goals for different parts of the company? If you were the CEO at DuPo..

  Interviewing for a management position

You are interviewing for a management position at Northern Air Cargo (NAC), a general airfreight service that operates throughout Alaska. As part of your preparation for the interview, you thoroughly check out their website. You also found out that t..

  Effective information system is important for a nonprofit

An effective information system is important for a nonprofit organization and should do more than just be an accounting system. Address at least four areas of accounting and other information that a system should be able to accumulate and process.

  Most important things to do prior to purchasing

If you do not know the business it is important to find out everything you can about it. One of the most important things to do prior to purchasing a business is "due diligence".

  Methods used to assess the behaviors organizational members

Describe methods used to assess the behaviors and attitudes of organizational members, and apply 1 model in an analysis of your organization.

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