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 the preferred process for space and equipment, Susan is considering...

Susan is considering outsourcing the daily room clean-up for her motel to Duffy's Maid Service. Susan rents an average of 50 rooms rented for each of 365 nights (365*50=total rooms

Define fddi network must be practicing what type of bridging, A bridge that...

A bridge that is used to connect an Ethernet network with a FDDI network must be practicing what type of bridging. a. a cut-through mode bridging b. source-route bridging

Explain importance of strategic management, In light of the various theorie...

In light of the various theories of Strategic Management and Competition touched on in this course (e.g., the Resource Model of the Firm, internal/external analysis, SWOT, Value Ch

Difference between performance and productivity measurement, 1. Explain the...

1. Explain the link between productivity and quality? 2. Who do van Biema and Greenwald (1997) and Drucker (1991) suggest are responsible for the slow growth in service sector

Explain the building blocks of competitive advantage, Discuss the building ...

Discuss the building blocks of competitive advantage and the role a manager should play in achieving this advantage.

Explain unsecured credit and secured credit, Compare and contract unsecured...

Compare and contract unsecured credit and secured credit, and explain the key differences.

Explain financial aspects of owning your own business, Now let's continue o...

Now let's continue our discussion about the financial aspects of owning your own business that are part of TCO #7 by considering the idea of "ratio analysis" (Hatten, 2009, p. 215)

Explain implied warranties of merchantability, The UCC includes both implie...

The UCC includes both implied warranties of merchantability, warranties of fitness, and product liability. Some of these warranties protect the customer from defective products and

Formulate a mathematical model for the problem, Question: Nostromo Ltd ...

Question: Nostromo Ltd is specialized in electrical installation for space ships. This electrical installation process require a certain amount of drilling and wiring. The dril

Compute the expcted inflation rates for each year, The Fed is concerned wit...

The Fed is concerned with interest rate levels and the possibilitiy of inflation. Given the gollowing information, calculate the expected inflation premiums over hte next three yea

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages