Suppose the standard deviation of demand

Assignment Help Operation Management
Reference no: EM13844207

Suppose the standard deviation of demand is 6 units per week and demand is 30 units per week on average. If the order lead time is 1 week and the desired service level is 95%, how much safety stock should we hold using the continuous review model?

Reference no: EM13844207

Questions Cloud

Most inventory control models : What are the key questions to be answered by most inventory control models?
Difference between a holder and a holder in due course : What is the difference between a holder and a holder in due course? Define each and explain the differences.
What is the economic order quantity : A certain type of computer costs $500 per unit to build and the annual inventory holding cost is 10% of the unit cost. Annual demand is 20,000 units and the setup cost is $100 per order. What is the economic order quantity (EOQ)?
Effective annual interest rate (in percent) on the loan : Suppose a borrower receives a 30 year CPM at 5% annually for 30 years for $450,000 but  must pay 3 points at origination. Assuming the loan is held to maturity and payments are to be made monthly, which of the following is the effective annual intere..
Suppose the standard deviation of demand : Suppose the standard deviation of demand is 6 units per week and demand is 30 units per week on average. If the order lead time is 1 week and the desired service level is 95%, how much safety stock should we hold using the continuous review model?
Ensure satisfactory service level : Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean daily demand for bandage BX-5 was 100 and was normally distributed. The standard deviation of the daily demand was 8. Suppose the required..
Sexual dysfunction disorder and paraphilic disorder : Choose one sexual dysfunction disorder and one paraphilic disorder. A description of each selected disorder
What ear are customers actually paying : A check---cashing store is in the business of making personal loan to walk---up customers. The store makes only one---week loans at 7.5 percent interest per week. What APR must the store report to its customer? What EAR are customers actually payi..
Three equally likely states of nature : There are three equally likely states of nature (High, Medium, and Low demand). If the Build a large factory option will post profits of $90,000, $30,000, and - $30,000, respectively, in the three states of nature, what is the EMV of the option?

Reviews

Write a Review

Operation Management Questions & Answers

  Compute the yield to maturity of bond

What is the yield to maturity of a bond that pays an 3% coupon rate, matures in 15 years, and is currently selling for $850?

  Illustrate some sources of risk in systems analysis

Illustrate what are some sources of risk in a systems analysis also design project, also elucidate how does a project manager cope with risk during stages of project management.

  Indicate the total daily cost of deliveries

The KVS Pharmacy is open from 10:00 a.m. to 8:00 p.m., and it receives 200 calls per day for delivery orders. It costs the pharmacy $25 to send out its cars to make deliveries. The pharmacy estimates that each minute a customer spends waiting for the..

  Pros of traditional manufacturing methods

You have recently been hired as a project manager by the CEO of the ABC Firm, a large manufacturing firm (just one division of the XYZ Conglomerate Corporation).

  Executives at your company are now interested in motorcycles

Executives at your company are now interested in motorcycles with larger motors and would eventually like to produce motorcycles in the touring class

  Strategy for a business concept

Craft a brief (1-2 pages) strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail.

  Blends regular and premium products from two types

The Carrington Oil Company blends regular and premium products from two types of crude oil, heptane (H) and octane (O). Each liter of regular is composed of at least 50% H. Each liter of premium is composed of at least 40% H. During this planning per..

  Evaluate the costs and benefits to both the company

Evaluate the costs and benefits to both the company and the employee. How do the benefits justify the costs. What factors should the company consider when designing a training program. How should its effectiveness be evaluated

  Explain the planning process of aggregate operations

A project manager must consider several components when overseeing the planning process of aggregate operations; specifically, whether such components are factors that are internal or external to the organization. Which of the following factors wo..

  View the possibilities for the specialty coffee market

In the early 1980s, how did Howard Schultz view the possibilities for the specialty coffee market? Why did Schultz think he could successfully import the Italian coffee bar concept to the United States?

  What are the possible drawbacks or dangers

in what ways might using IT, rather than face - to - face communication, help or hinder global trade in the future?

  Multiple regression to forecast demand of its product

How would a manufacturing company use multiple regression to forecast demand of its product? Give one detailed example

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd