How would the costs change with a 90% service level

Reference no: EM131413713

An item of stock has a unit cost of £40, a reorder cost of £50 and a holding cost of £1 a unit a week. Demand for the item has a mean of 100 a week with a standard deviation of 10. Lead time is constant at three weeks. Design a stock policy that gives the item a service level of 95%. How would the costs change with a 90% service level?

Reference no: EM131413713

Questions Cloud

Analyze mickey mantle case using seven-step decision model : As in the case of the liver transplant for Mickey Mantle, should the system make exceptions for anyone? Why or why not? Write a 1,050- to 1,400-word paper in which you analyze the Mickey Mantle case using the Seven-Step Decision Model

What is the best ordering policy for the item : Annual demand for an item is 2,000 units, each order costs £10 to place and the annual holding cost is 40% of the unit cost.

Subsidize education for college students : All U.S. states subsidize education for college students, mostly by charging below-cost tuition. Nearly-free tuition is available in many European countries and has been proposed in California (see p. 80).

Analyze the human rights issues presented by pharmacares : PharmaCARE (We CARE about YOUR health®) is one of the world's most successful pharmaceutical companies, enjoying a reputation as a caring, ethical and well-run company that produces high-quality products that save millions of lives and enhance the..

How would the costs change with a 90% service level : Design a stock policy that gives the item a service level of 95%. How would the costs change with a 90% service level?

Explore the relationship between appreciating diversity : Explore the relationship between appreciating diversity among racial, ethnic, and other minority groups and being an effective counselor. Substantiate your answer using examples

Adolf hitler the guy who destroy the world : Adolf Hitler the guy who destroy the world and How did he destroy the world

What is the reorder level for a 98% cycleservice level : What reorder level should the company use for an item that has a Normally distributed demand with mean of 1,000 units a week and standard deviation of 100 units? What is the reorder level for a 98% cycleservice level?

International regulator regimes affect international trade : In what ways do international regulator regimes affect international trade? How would the economic environment be different without them?

User Account

All Pages