A newspaper publisher uses roughly 800 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is six workdays. What is the appropriate reorder point quantity, given that the company desires a service level of 95 percent, if that stockout risk for various levels of safety stock is as follows: 1,500 feet, .10; 1,800 feet, .05; 2,100 feet, .02; and 2,400 feet, .01?
Answer to relevant QuestionsGiven this information: Expected demand during lead time 300 units Standard deviation of lead time demand 30 units Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will ...One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at ...A drugstore uses fixed- order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 14 days, and lead time is 2 days. Average demand for one item is 40 units per day, and the ...Burger Prince buys top- grade ground beef for $ 1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. ...Some key elements of production systems are listed in Table 14.3. Explain briefly how lean systems differ from traditional production systems for each of those elements.
Post your question