Explain what amount of safety stock is appropriate, Operation Management

Assignment Help:

Given this information:

Lead-time demand = 630 pounds

Standard deviation of lead time demand = 40 pounds (Assume normality.)

Acceptable stockout risk during lead time = 4 percent

a. What amount of safety stock is appropriate?

b. When should this item be reordered?

c. What risk of stockout would result from a decision not to have any safety stock?


Related Discussions:- Explain what amount of safety stock is appropriate

Explain what is the forecast error, The numbers of patient arrivals to the ...

The numbers of patient arrivals to the ER department at a local hospital for the past 5 weeks are: week: 1 , 2 , 3 , 4 , 5 arrivals: 405 ,420 , 400 , 380 , 411 a) Compute a three-w

Explain when you go shopping for a new computer, When you go shopping for a...

When you go shopping for a new computer, is your real objective to import a computer into your apartment, or is it to export cash from your wallet? What does this tell you about th

Explain timmy says he doesn like getting swindled, Timmy Thompson, who fini...

Timmy Thompson, who finished his second year at a local community college last May, sees an advertisement to rent an apartment at Ocean Apartments for $1,500 a month. Timmy walks i

Explain inventory control, Explain inventory control. Inventory Contro...

Explain inventory control. Inventory Control - its importance and scope: Inventory control is the scientific way of finding out how much stock  be maintained so as to meet the

Describe how advancing technologies in the security, Explain how advancing ...

Explain how advancing technologies in the security field are changing how end users are identified. In your response, identify potential security gaps that may be caused by these n

Explain how will you account for any wastage, You are the branch operations...

You are the branch operations manager for a leading manufacturing company. The following are the bill of materials (BOM), Master Production Schedule, and Inventory Record Sheet for

Explain what sales would you predict for the first quarter, The following t...

The following table shows a tool and die company's quarterly sales for the current year. What sales would you predict for the first quarter of next year? Quarter relatives are SR1=

Compute the degrees of freedom associated, In each of the following situati...

In each of the following situations, distinguish which statistical analysis you would conduct and which appropriate test or test statistic should be used. • Consumer preferences

Operation Management, n the table given below the Distribution Manager is e...

n the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what would

Therefore by searching newspapers, You have successfully prepared yourself ...

You have successfully prepared yourself for the career of your choice but the recruiters visiting your school have not offered you a job. Now you must look on your own. So by searc

Write Your Message!

Captcha
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