What is its expected on-order inventory

Assignment Help Operation Management

Reference no: EM132108790

ACold Inc. is a frozen-food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold’s customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso’s Frozen Pizza (CFP). Demand for CFPs averages 400 per day with a standard deviation of 152. Because ACold orders at least one truck from its supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold’s computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPs arrives four days after the order.

a. Suppose it uses an order-up-to level of 2410. What is its expected on-hand inventory?

b. Suppose it uses an order-up-to level of 2500. What is its expected on-order inventory?

c. Suppose it uses an order-up-to level of 2000. What is its in-stock probability?

d. Suppose it wants a .90 in-stock probability. What should its order-up-to level be?

Reference no: EM132108790

Questions Cloud

Define and apply the four elements of contract formation : Define and apply the 4 elements of contract formation to determine whether or not the parties formed a contract;

State the benefits and costs of voluntarily adopting hiring : Analyze the benefits and costs of voluntarily prohibiting three to five federal forms of discrimination prohibited under the federal anti-discrimination laws.

Discuss the concept of the constructivism : Constructivism portrays humans as meaning-making creatures, actively involved in constructing their experiences. How do constructivists view the person.

Computing on physical machines : Identify how these differences affect the methods companies use to secure their cloud environment.

What is its expected on-order inventory : Suppose it uses an order-up-to level of 2410. What is its expected on-hand inventory? What is its expected on-order inventory?

Identifying 4 different stakeholders for a project : Identifying 4 different stakeholders for a project; list 2 things that each stakeholder requires in order to deem the project successful.

What types of language impairments would be seen : Discuss the difference between expressive and receptive language systems, focusing on neuroanatomical substrates. What types of language impairments.

Difference in approach between coaching and mentoring him : What would be the difference in your approach between coaching and mentoring him? Please make sure you provide both the definitions and a specific example.

Requirements and controls in a security process : 1. What are the three security properties of information called and how could they be described?

User Account

All Pages