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An automobile manufacturer orders a specific fastener from the same supplier every 4 weeks. Lead time is 1 week. The supply chain manager must determine how many fasteners to order. A check of stock reveals 10 boxes on hand, each containing 200 units. Daily usage of the fastener is approximately normal, with a mean of 125 units and a standard deviation of 50. The desired service level is 98%.
Questions:
A) What amount of safety stock is necessary for the fastener?
B) How many boxes (of 200 units each) should be ordered?
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consider the following data.inventory itemaverage demand annualsigma std. dev. of demand during lead timeitem unit
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The firm has started marketing its new product at a price of $25.00 per unit; however, the average variable cost of the product is $30.00.
In discussing the supply chain management concept, the logistics professional should ideally be able to assess the various cost centers associated with a specific strategy. Brainstorm and explain some of the costs involved in logistics, as well as co..
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