What is reorder point-how much of inventory is safety stock

Assignment Help HR Management
Reference no: EM131780356

Problem 1 The daily demand for integrated circuit boards for Reliance Computers, which assembles computers, is 80 units. The daily demand is normally distributed and has a standard deviation of 6 units. The lead time from the supplier is a constant of 9 days. If Reliance Computers is willing to accept a stock risk of 7%, what is the Reorder Point and how much of the inventory is Safety Stock?

Problem 2 The desired service level for a sporting good store’s inventory of string bathing suits is 85%. The average demand during the replenishment period is 180 suits with a standard deviation of 30 suits.

a) What is the reorder point?

b) If the store wants to increase its service level to 91% for the suits, what is the reorder point and safety stock?

Problem 3 An automobile service station uses 900 cases of motor oil annually. The station operates 300 days a year. The order replenishment lead time for motor oil is 4 days and the daily demand has a standard deviation of 4 cases per day. The station has specified service level of 97%.

a) What is the level of safety stock required assuming that demand during lead time is normally distributed?

b) If the station decides to hold only 6 cases of motor oil as safety stock what is the stock out risk?

Reference no: EM131780356

Questions Cloud

Develop systematic performance measures : Develop systematic performance measures in regards to " Leadership Management"
Growth integration strategies play in corporate strategy : In your own words discuss the roles each of the four vertical growth integration strategies play in corporate strategy.
Describe short and long term business strategy : We are making the plan for expanding the business (Exporting ) in France from the US. describe short and long term business strategy
Contribute to an effective corporate strategy : In your own words explain how Corporate Parenting can contribute to an effective corporate strategy. Discuss how it can relate to a SWOT analysis?
What is reorder point-how much of inventory is safety stock : The daily demand for integrated circuit boards for Reliance Computers, what is the Reorder Point and how much of the inventory is Safety Stock?
Company produces men pajamas and ladies nightgowns : The Deckers Clothing Company produces men’s pajamas and ladies’ nightgowns.
Cognitive biases that individual decision makers experience : Select at least three of the cognitive biases that individual decision makers experience.
Manufacturing facility is ordered from an outside supplier : A component used in a manufacturing facility is ordered from an outside supplier.
Shareholders and stakeholders perspectives : Describe the difference between Shareholders and Stakeholders perspectives when it comes to the corporation.

Reviews

Write a Review

HR Management Questions & Answers

  Improve problem solving capabilities within organization

Types of teams as to their effectiveness that will improve problem solving capabilities within organizations.

  Influence tactics help in reducing organizations politics

Explain the different types of influence tactics that will be of a help “if adopted” in reducing the organizational politics.

  Report on citigroup''s hr service level agreement

Human Resources or Human Resource Management deals with HR Service Level Agreement. HR Service Level Agreement is an agreement made between the employer and the employee, which states that the employee would work under any client and sometimes any ti..

  A project report on hrm

Human Resource Management as the name suggests, it is a management discipline which deals with the human i.e. the workforce aspect of organizations. Need and practices of HRM are inevitable in present scenario of extreme competition where "Talent War..

  Hrp: recruitment and selection

Recruitment and Selection is the initial ladder of any Human Resource Planning process and contains an immense significance for any organisation.

  A project report on study of statutory complainces

Statutory compliance and its immense knowledge are crucial to be understood in an organization. It contains all the forms, procedures and acts applicable in a company.

  Operant conditioning and Reinforcement

Operant conditioning is a learning process where behaviour is controlled by its consequences. In this process an individual's behaviour can be modified through the use of positive or negative reinforcement.

  Effectiveness of training programs in achieving customers an

The main motive for conducting this research is to provide broad range of research of the literature and their reviews related to training and development and assisting the employees in providing customers satisfaction.

  A critical analysis of hr processes and practices in fedex c

FedEx is illustrious for its novel HR processes and practices that have greatly accounted for its success.

  Integrating culture and diversity in decision making

People in the organization are known as Google where they share common goals and have common vision.

  Impact of employee attrition on people management in organis

Talent management implies recognizing a person's inherent skills, traits, personality and offering him a matching job.

  Labour dissonance at maruti suzuki india limited: a case stu

This Case Study focuses on various issues related to Labour Unrest at Maruti Suzuki India Limited.

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