Explain what amount of safety stock is appropriate, Operation Management

Assignment Help:

Given this information:

Lead-time demand = 630 pounds

Standard deviation of lead time demand = 40 pounds (Assume normality.)

Acceptable stockout risk during lead time = 4 percent

a. What amount of safety stock is appropriate?

b. When should this item be reordered?

c. What risk of stockout would result from a decision not to have any safety stock?

Related Discussions:- Explain what amount of safety stock is appropriate

Inventory management, The injection molding department of a company uses an...

The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 ga

Explain europe and japan to adopt the new product, What triggered the new p...

What triggered the new product strategy at Minnesota Biolabs? 2. What prediction would you make for the success of getting the country general managers in Europe and Japan to adopt

Operations system, what is operations system? explain the process of operat...

what is operations system? explain the process of operations system?

Explain what are the key competencies, What are the key factors that define...

What are the key factors that define success in the search industry? What are the key competencies, capabilities, and resources of successful search engine companies?

Developing an layout, What is the difference in strategy in developing an i...

What is the difference in strategy in developing an initial layout for a new facility as comparedn to the strategy in improving the layout of an existing facility?

Explain what factors have limited the ability of local law, 1. What factors...

1. What factors have limited the ability of local law enforcement agencies to respond to the growing threat of computer crime? Answer A. lack of training B. lack of diagnostic equi

Describe what is a ledger account, What is a ledger account?

What is a ledger account?

Explain situation where instruction is not necessary, What would be an exam...

What would be an example of a situation where instruction is not necessary to solve a performance problem?

Define ethical responsibilities and social responsibilities, Explain the di...

Explain the difference between ethical responsibilities and social responsibilities of a manager. Please in you own words.

Therefore by searching newspapers, You have successfully prepared yourself ...

You have successfully prepared yourself for the career of your choice but the recruiters visiting your school have not offered you a job. Now you must look on your own. So by searc

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages