Given the following information: Expected demand during a lead time = 300 units Standard deviation of demand
Question:
Expected demand during a lead time = 300 units
Standard deviation of demand during a lead time= 30 units
Demand during a lead time is distributed Normally:
a. Determine the safety stock needed to attain a 1 percent risk of stock-out during a lead time.
b. Would a stock-out risk of 2 percent require more or less safety stock than a 1 percent risk? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
Expected demand during a LT 300 units s dLT ...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
Question Posted:
Students also viewed these Management Leadership questions
-
Given the following information: Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time= 52 kg Acceptable stock-out risk during a lead time = 4 percent a. What...
-
Given the following information, what is the expected return on a portfolio which is invested 60 percent in stock A and 40 percent in stockB? State of Probabillity of Return if State Occurs Ecoomy...
-
Given the following information, calculate the weighted average cost of capital for Hamilton Corp. Line up the calculations in the order shown in Table. Percent of capital structure: Debt...
-
3 (a) A laser beam of uniform cross-sectional area passes through air into a glass block (refractive index 1.5). Determine the ratios of (i) the velocities (ii) the frequencies and (iii) the...
-
As O2(l) is cooled at 1 atm, it freezes at 54.5 K to form solid I. At a lower temperature, solid I rearranges to solid II, which has a different crystal structure. Thermal measurements show that H...
-
The bent rod ABDE is supported by ball-and-socket joints at A and E and by the cable DF. If a 60-lb load is applied at C as shown, determine the tension in the cable. in. 7 in 60 lb ll in 10 in x 14...
-
The following are types of active surveillance except a. National household surveys gathering information on the social status and health status of people in a particular country b. Notifcation of...
-
West Sides Pizza bought a used Nissan delivery van on January 2, 2010, for $19,000. The van was expected to remain in service for four years (36,000 miles). At the end of its useful life, West Sides...
-
A composite made of aluminum matrix with steel fibers is designed for carrying electrical power. Also, the electrical resistivity of aluminum is 50 x10^-7 Ohm.cm and that of steel is 400x10^-7...
-
The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20 percent at the beginning of the...
-
A newspaper publisher uses roughly 800 metres of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday....
-
The following table contains the monthly usage and unit costs for a random sample of 15 items from a list of 2,000 inventory items at a health care facility. a. Develop an A-B-C classification for...
-
Given P(A) = 0.40, P(B) = 0.25, P(C) = 0.35, P(B | A) = 0.25 and P(A | C) = 0.80, solve the following. (a) P(A B) = __________ (b) P(A C) = __________ (c) If A and B are independent, P(A B) =...
-
What does the grant funding for this program mean in terms of the overall budget? Is this in addition to level funding or is that the total budget? Understanding the financial context is important to...
-
Discuss the importance of financial planning, how it may change, how much money will you need to retire, what factors should be considered (how long you plan to work, does your company offer a...
-
A car, initially traveling 22.0m/s speeds up at a rate of 2.00m/s2 for 4.40s. Determine all unknowns and answer the following questions. What was the car's final speed? m/s How far did the car travel...
-
What is the difference between causation and cash accounts? Define and present a simple example of a Balance Sheet, Income Statement and Cash Flow. I NEED A GOOD EXPLANATION ABOUT THIS AND CAN...
-
Simone went to a payday loan shop for an advance on her $500 paycheck, to be repaid in 7 days. The store will charge a fee of $105. What is the store's annualized return? Round to the nearest 0.01%,...
-
Evaluate the following integrals. [con cos 20x dx
-
Tarick Toys Company manufactures video game consoles and accounts for product costs using process costing. The following information is available regarding its June inventories. The following...
-
Use pattern tests to determine if the sample observations used in the x-chart in Problem 3-17 reflect any nonrandom patterns.
-
Use pattern tests to determine if the sample observations used in the x-chart in Problem 3-17 reflect any nonrandom patterns.
-
Use pattern tests to determine if the sample observations used in the p-chart in Problem 3-1 reflect any nonrandom patterns.
-
can anyone let me know what the capital and non-capital purchases would be from the cash book records Ben's Bookkeeping Cash Receipts Journal GST Other receipts Date Rec no. Particulars Bank...
-
When assessing a foreign country, market managers have to evaluate how feasible it is to target the market. What are marketing model drivers and enabling conditions? Briefly explain using the example.
-
The firm is looking to invest (in Year 0) in the design and development of an e-bike docking station for which a Return on Investment (ROI) of 30% is desired by the firm which anticipates an annual...
Study smarter with the SolutionInn App