Explain safety stock would provide a stock out risk, Operation Management

Assignment Help:

The injection moulding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 gallons. It takes four days for an order to be delivered. Safety stock is 65 gallons, which provides a stock out risk of 9 percent. What amount of safety stock would provide a stock out risk of 3 percent? Assume normality.

Related Discussions:- Explain safety stock would provide a stock out risk

Explain collective bargaining process, Detail the five measures that unions...

Detail the five measures that unions have taken in the collective bargaining process to introduce provisions that would protect employees displaced or laid off due to technology ch

Define financial institutions in the recent financial crisis, Consider whet...

Consider whether the implementation of the Sarbanes-Oxley Act supports ethical behaviour. Specifically, address Title 3 of SOX and whether you think SOX worked for financial instit

Formulate an integer programming model using excel solver, New fire station...

New fire stations are to be located in a city and the major of the city wants to decide where to locate the 2 fire stations. For planning purposes, the region has been divided into

Sequencing., minimise the operation procedure

minimise the operation procedure

Explain what can they do to prevent cost overruns, Why do you think it's di...

Why do you think it's difficult to understand some of the basic cost terms in this chapter? Why aren't many technical people interested in cost-related subjects? What could be done

Question 2, Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to ...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding among

Explain identifying and developing global leaders, Identifying and developi...

Identifying and developing global leaders is a key concern for international companies. Compare and contrast the skills and context of the traditional / national manager with that

Explain safety inventory of coal and mro materials, A power plant in Califo...

A power plant in California uses coal at the rate of 100,000 pounds each day. It also uses MRO material at the rate of 1,000 pounds each day. The coal comes from Wyomung and the MR

Explain how is the critical incident technique, 1) How do effective manager...

1) How do effective managers assess performance and what is the role and process of the Behaviourally Anchored Rating Scale (BARS)? 2) How is the critical incident technique used t

Explain levels of management by management skills, Explain levels of Manage...

Explain levels of Management by Management Skills. Management Skills needed successful manager, be categorized as given below: Technical skill refers to the pro

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages