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A store manager controls the inventory of digital cameras with a Reorder Point Ordering inventory policy. The ROP is currently set at the value 555 and the lead time has been consistent at 1 week. It's estimated that the weekly demand for digital cameras follows a normal distribution with mean 500 and standard deviation 40. The manager has set a service level target of 95%. Which one of the following actions should be taken to satisfy the service level target?
A) Increase the ROP level by 100 units.B) Increase the ROP level to 566.C) Do not change the ROP level since it achieves the target.D) Reduce safety stock by 45 units.E) Increase safety stock to 166.
The Super Discount store (open 24 hours a day, every day) sells 8-packs of paper towels, at the rate of approximately 420 packs per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $.50.
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Harry is a senior manager at Pine and Acorn Consultancy. He has been assigned the task of establishing the training objectives. First, he makes a list of the individuals to be trained.
What is CEO Toback's most pressing concern and how could he go about addressing this concern?
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