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 if a wireless signal collides with an object, If a wireless signal ...

If a wireless signal collides with an object whose dimensions are much larger than the signal's wavelength, what is the signal most likely to do? a. reflect b. refract c.

Explain what are the advantages and disadvantages of each, Would you rather...

Would you rather work for a supervisor high in need for achievement, affiliation, or power? Why? What are the advantages and disadvantages of each? Explain

Describe future of global air transportation, What do you predict for the f...

What do you predict for the future of global air transportation?

Attributes - statistical process control, Attributes - Statistical Process ...

Attributes - Statistical Process Control On the other hand, some processes have outputs with attributes to be controlled where counting the number of defects is more appropria

Define the term economic order quantity, Define the term Economic Order Qua...

Define the term Economic Order Quantity. Economic Order Quantity (EOQ): A mathematical computation for a fixed quantity of inventory ordered every time which would minimi

Oprations process design, what is operation process design ? what are the i...

what is operation process design ? what are the important factors that effect a process design

State the perpetual inventory control systems, State the Perpetual inventor...

State the Perpetual inventory control systems Continuous (Perpetual) Inventory Control Systems: Stock levels are continually monitored and reviewed within ‘real-time’ and

Forecasting, The cafeteria supervisor at CarWash is interested in developin...

The cafeteria supervisor at CarWash is interested in developing a forecast model for the number of meals to be prepared each day. The following daily data from the cafeteria’s regi

Explain what is the annual number of orders, Office Supreme, Inc., a local ...

Office Supreme, Inc., a local retailer of office supplies, faces demand for one of its inventory items at a constant rate of 240,000 units per year. It costs Office Supreme $38 to

Explain utilitarian and a libertarian view, Compare a Utilitarian and a Lib...

Compare a Utilitarian and a Libertarian view on the importance and enforcement of consumer rights (to choose, to safety, to be informed, to be heard, to redress and to privacy).

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