What is the reorder level for a 98% cycleservice level

Reference no: EM131413710

A company advertises a 95% cycle-service level for all stock items. Stock is replenished from a single supplier who guarantees a lead time of four weeks. 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?

Reference no: EM131413710

Questions Cloud

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?

Public economics-taxation : Examine the following proposed tax reforms. Evaluate them according to the following three principles for optimal taxation: equity, efficiency, and complexity considerations.

What is the best inventory policy for the component : How does this compare with the option of making the component internally at a rate of 80 units a day?

Find the optimal order quantity for the part : The purchasing department costs $450,000 a year and sends out an average of 2,000 orders. Find the optimal order quantity for the part, the time between orders and the minimum cost of stocking the part.

User Account

All Pages