Elucidate what rop is appropriate if the risk is stock out

Assignment Help Operation Management

Reference no: EM1373388

Q. The manager of a car wash received a price list from the vendor who supplies soap also a promise of a shorter lead time for deliveries. Formerly the lead time was six days however now the vendor promises a reduction of 25 % in which time. Annual usage of soap is 4,500 gallons. The car wash is open 360 days a year. Suppose which daily usage is normal also which it has a standard deviation of 1.5 gallons per day.

a. Elucidate what ROP is appropriate if the acceptable risk of a stock out is 2 %?

b. At Elucidate what stock out risk safety stock would be 9 gallons.

c. If the normal lead time is 4 days with a standard deviation of 1 day, then Elucidate what would be the ROP with a 8% stock out risk?

Reference no: EM1373388

Questions Cloud

Elucidate what reasons might be using a single measure : different standards for different products or services (e.g., 1.00, 1.20, 1.33 also 1.40). Elucidate what reasons might there be for using a single measure also Elucidate what reasons might there be for using multiple standards.

Transform a traditional organization into a lean model : How long is the right amount of time to transform a traditional organization into a lean model and can you offer some examples of companies that have transformed successfully in a short period of time

Computes the tact time based on the information given : The management has set a standard which every employee should be able to answer at least 400 e-mails during every shift. Computes the tact time based on the information given.

Differentiate the state of the economy : Make an analysis of the United State Fiscal Policy by addressing the following, differentiate the state of the economy. Determine the focus of the current fiscal policy?

Elucidate what rop is appropriate if the risk is stock out : Suppose which daily usage is normal also which it has a standard deviation of 1.5 gallons per day. Elucidate what ROP is appropriate if the acceptable risk of a stock out is 2 %.

Describe how should the advertising budget be allocated : The Corporation's market research department advises the Corporation to use at most 90% of the advertising budget on television ads. Describe how should the advertising budget be allocated to maximize the total audience.

Budget deficits and its effects on us businesses : What do you think about current and projected budget deficit [over 500 Billion this year and coming years] and do you support Bush's economic policy to cut tax and run the Federal government through lending?

Elucidate what does the productivity figure suggest : Computes the multifactor productivity measure for every of the weeks shown for production of chocolate bars. Elucidate what does the productivity figure suggest. Suppose 40hour weeks also an hourly wage of R12.

Elucidate what is observed time for this job : The performance rating for a particular welder was established at ninety-2 % (92% ). Additionally, every welder is granted a twelve % (12%) allowance for personal needs, fatigue also routine delays.Elucidate what is observed time (OT) for this job.

User Account

All Pages