Why the production manager is asked to reduce the safety, 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. Find the reorder point necessary to provide a 98% service probability.

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

 


Related Discussions:- Why the production manager is asked to reduce the safety

Explain dynamically continuous innovation, The terms continuous innovation,...

The terms continuous innovation, dynamically continuous innovation, and discontinuous innovation are classifications based on generated sales. production technology. degre

Explain revealed its batna, During a negotiation, the union proposes a 25 c...

During a negotiation, the union proposes a 25 cent per hour wage increase across the board. Management says it cannot afford that. Management has just: A. Reached an impasse B. Est

Explain overwhelming moral dilemmas, Should ethical concerns be part of lif...

Should ethical concerns be part of life's everyday experience, or is it only necessary when we are faced with overwhelming moral dilemmas? Please state why you have come to this co

Explain what problems associated with planned change, What problems associa...

What problems associated with planned change should the OD practitioner be aware of? How might such problems be overcome?

Explain the financial flexibility workforce, Explain the financial flexibil...

Explain the financial flexibility workforce. Financial flexibility can be accomplished by performance associated pay systems for illustration when production staff are paid

Explain chemical pollutant, A veterinarian is estimating the degree of asso...

A veterinarian is estimating the degree of association between the exposure/non-exposure of cats to a chemical pollutant and the incidence of a particular respiratory illness among

Explain levels of management, Explain levels of management. Levels o...

Explain levels of management. Levels of Management: Industrial management has got the given activity levels: 1)  Top Management : this includes Board of Directors, Ma

Loading, what is significance of loading?

what is significance of loading?

What strategies would be consider for lowering your costs, Type your questi...

Type your question here Four-step process for setting a price on a product, and using 2,000 custom-printed t- shirts as your product (at a cost of $12.25 each to produce), calculat

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