How reduce the safety stock, Operation Management

Assignment Help:

The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.

a. Find the reorder point necessary to provide a 98 percent service probability.

b. Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the new service probability be?


Related Discussions:- How reduce the safety stock

Explain stakeholder analysis, Stakeholder analysis is important in risk ass...

Stakeholder analysis is important in risk assessments for most activities is not important in risk assessments for most activities is usually undertaken at the end of the planning

Explain traditional employment agencies, In what ways do executive search f...

In what ways do executive search firms differ from traditional employment agencies?

Essentials of management, write and explain the essentials of management gi...

write and explain the essentials of management giving practical examples

States gross national product, States Gross National Product (GNP) Gr...

States Gross National Product (GNP) Gross Domestic Product (GDP) adjusted for foreign earnings.

Explain guidelines on discrimination national origin, 2. Inez Garcia was bo...

2. Inez Garcia was born in Portland, Oregon. Her mother is from Italy and Jewish. Her father is Mexican. Under the Guidelines on Discrimination Because of Religion or National Orig

Explain most important consideration of pre-employment, From the case study...

From the case study, determine what ideals, obligations, and effects must be considered in using psychological tests as pre-employment screens. Decide which the most important cons

Explain the four options of feasibility, Describe the four options highligh...

Describe the four options highlighted in the case study in terms of their feasibility, acceptability and vulnerability.

Explain permissive actions act, Why do unions emphasize the need for cohesi...

Why do unions emphasize the need for cohesiveness? So they can issue calls for "solidarity" to members during periods of threat Because group members tend to behave different

What are the major issues that joe thomas has to deal with?, What are the m...

What are the main issues that Joe Thomas has to deal with?

Define effectiveness and identify three businesses, From the video the frui...

From the video the fruit guys, determine the Fruit Guys business strategy. Identify three other businesses that could use the five questions the Fruit Guys used to determine effect

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