+1-415-670-9189
info@expertsmind.com
The optimal quantity of safety stock
Course:- Operation Management
Reference No.:- EM131124450




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

Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without stock, is 200 chairs. Carrying cost is $30 per unit per year, and cost of a stockout is $60 per chair per year. Given the demand probabilities during the lead time, how much safety should be carried?

0                   0.2

100              0.2

200              0.2

300              0.2

400            0.2

The optimal quantity of safety stock which minimizes expected total cost is ___ units? (Enter response as a whole number.)




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Operation Management) Materials
Describe the following acts and agencies and what they regulate or protect: The FDA, FTC, unfair and deceptive practices, EPA, Clean Air Act, and Endangered Species Act.
Academic health centers are defined as "teaching hospitals . . . medical and nursing schools, clinics, emergency departments, freestanding outpatient care centers, hospices, a
A policy may be put into place that increases access to fetal and maternal medicine for American Indians, due to their historically high rates of infant mortality. This is a f
There appears to be an almost magical transition that must occur for an entrepreneurial organization to mature and work efficiently with the men and women which dominate the w
Since violated expectations often lead to conflict for individual and team relationships, explain some of the most common expectations that leaders and subordinates often viol
We talked about the short-term objectives that are necessary to "work your plan", so we will do 2 things in this area. Demonstrate your knowledge of this concept by stating yo
Richmond, Inc., operates a chain of 30 department stores. Two years ago, the board of directors of Richmond approved a large-scale remodeling of its stores to attract a more u
Describe the legal, cultural, and ethical challenges that confront the global business presented in your selected case study. Determine the various roles that host governments