IM Systems (Problem 13.39) is considering purchasing monitors from a U.S. manufacturer that would guarantee a lead
Question:
IM Systems (Problem 13.39) is considering purchasing monitors from a U.S. manufacturer that would guarantee a lead time of eight days, instead of from the Taiwanese company. Determine the new reorder point given this lead time and identify the factors that would enter into the decision to change manufacturers.
Data in Problem 13.39
IM Systems assembles microcomputers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long lead time of 25 days. Daily demand is normally distributed with a mean of 3.5 monitors and a standard deviation of 1.2 monitors. Determine the safety stock and reorder point corresponding to a 90% service level.
Step by Step Answer:
Operations And Supply Chain Management
ISBN: 9781119577652
10th Edition
Authors: Roberta S. Russell, Bernard W. Taylor