Determine the safety stock and reorder point

Assignment Help Operation Management
Reference no: EM13229095

A local bar serves a premium draft beer to its customers. The daily demand for beer is assumed to follow a normal distribution with a mean of 80 litres and a standard deviation of 16 litres. The lead time required to receive an order of beer from the local distributor is 12 days. Determine the safety stock and reorder point if the bar wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level is desired?

Reference no: EM13229095

Questions Cloud

What is the net profit for each digital thermometer sold : Consider the financial aspects of the digital thermometer project. The project cost is estimated at $10,000. The total manufacturing cost of the digital thermometer, as called for in the specifications, total $150(that is, $95 parts
Explain the aqueous layer was discarded : A mixture of an amine, RNH2, and other items in CH2Cl2 was extracted with 10% HCl. The aqueous layer was discarded. The organic layer contained no amine. What went wrong?
What opportunities are there for established airlines : What opportunities are there for established airlines to improve their competitive position through differentiation strategies? Make specific proposals for how established airlines can differentiate their customer offerings more effectively.
Find the cost of charging the battery for 5-hours : An automobile battery is charged with a constant current of3.75A for5hours. The terminal voltage of the battery isv= 11 + 0.5tVfort> 0, wheretis in hours.(a) Find the energy delivered to the battery during the5hours
Determine the safety stock and reorder point : Determine the safety stock and reorder point if the bar wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level is desired?
Explain method for measuring phosphorus concentration : In the malachite green method for measuring phosphorus concentration, what it the purpose of each of the following reagents? Include in your answer what would happen if you didn't use the reagent.
What is the electric potential at a point midway : Two charged particles, Q1 = +5.50 nC and Q2 = -3.40 nC, are separated by 39.0 cm. (a) What is the electrical potential energy of the pair (b) What is the electric potential at a point midway between the charged particles
What are the annual carrying cost : a. What is Office Supreme's optimal ordering quantity? b. What is the reorder point? c. What is the annual number of orders? d. What is the optimal interval (in working days) between orders? e. What are the annual carrying cost, ordering cost and ..
Discuss issues related to ethical dilemmas : Discuss issues related to ethical dilemmas, discuss what are the issues, what are the possible resolutions and how to prevent similar reoccurrences.

Reviews

Write a Review

Operation Management Questions & Answers

  What run quantity should be used to minimize total annual

What run quantity should be used to minimize total annual costs? Do not round intermediate calculations. Round your final answer to the nearest whole number.

  Are long-term objectives helping the enterprise

Are long-term objectives helping the enterprise make appropriate strategic choice decisions? How do distinctions between value disciplines

  Which amounts to allocating about wheatie

Wheatie should be allocated 35% more space than Grano, which amounts to allocating about 57% to Wheatie also 43% to Grano. Illustrate what do you think.

  How does the degree of customer contact relate to the kinds

How does the degree of customer contact relate to the kinds of skills needed by service workers and the degree of training they require?

  Compare to the values underlying other types of change

how do underlying values of organization developement compare to the values underlying other types of change?

  How compensation system influences employees motivation

How the compensation system influences employees motivation, productivity and satisfaction. How important is the compensation system in an employees productivity?

  Illustrate what problems might an organization encounter

Illustrate what problems might an organization encounter in doing AAP that it might not encounter in regular staffing planning.

  Determine the ending inventory and lost sales

Aggregate demand for a product family is given in the table below for the four quarters of 2008. The inventory cost is $2 per unit per quarter.

  Initiate an order also holding costs are based on an annual

Quarter-inch stainless-steel bolts 1 ½ inches long are consumed in a factory at a fairly steady rate of 60 per week. Bolts cost plant 2 cents every. It cost plant $12 to initiate an order also holding costs are based on an annual interest rate of ..

  Estimate the average time a car is in the system

Automobiles arrive at a drive through window at a post office at the rate of 4 every 10 mins. The average service time is 2 mins.

  How must the selling price be changed

Is the situation a profitable one for the job shop? If not, how must the selling price be changed for the expected profit to be positive?

  Who are purchasings internal customers

Discuss the concept of the internal customer. Who are purchasing's internal customers?

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