How many should you order for the current review period
Course:- Supply Chain Management
Reference No.:- EM13219943

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Supply Chain Management

You would like to develop an inventory ordering policy of a 95% probability of not stocking out. Demand for the products is 7000 units per year. Your store opens 350 days a year. Every three weeks (21 days) inventory is counted and a new order is placed. It takes 10 days for the products to be delivered. Standard deviation of daily demand is 5 units. You have 200 units on hand right now.

a. How many should you order for the current review period?

b. If management decide to change the service level to 99% (which means 99% probability of not stocking out), how many should you order?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Supply Chain Management) Materials
Develop a document that creates a sourcing plan for future requirements. In the sourcing plan, you should explain inclusions that should be made in contracts formed in the fut
An artifact should be directly related to the knowledge area. For example, an artifact on collaborative supply chains, which may have a mention of inventory management but d
Using PERT, a project team was able to determine that the expected project completion time for construction of a building is 21 months and the project variance is 4. Hint: By
Compare the supply chain practices of two or more different companies in the same industry or similar industries. Should one firm adopt another's superior practices, or are
At the end of 2008 the number was already 42 1 and in the year 2010 the WTO expects a total number close to 350 of additional Free Trade Agreements implementations, nearly dou
Which are the security development activities that you would recommend for e-procurement or computer-based contract so that both parties, buyer and seller, feel more secure
How does transportation add value in a supply chain? What are the potential disruptions in transportation? How do the disruptions impact the performance of a supply chain?
Compile a draw a supply chain for one of the companies mentioned and include the supply chain flows of Information, goods and services, and finances in the supply chain - Incl