Suppose you are a corporate buyer. One of your suppliers delivers a particular part in 12 days on average, with a standard deviation of 3. The daily usage averages 20 units per day with a standard deviation of 4. What is the standard deviation of demand during lead-time? If you use a continuous review policy, how much safety stock would you want on hand to ensure at least 90 percent availability of the part while waiting for replenishment?
Answer to relevant QuestionsKorner Hardware manager Emerson Jones is interested in determining how many Nativity Scenes to order for the ten-day holiday season. Past experience indicates that demand for these Nativity Scenes average 8 per day during ...Suppose in problem 23, you were able to reduce your order cost to $10. What is the impact on all other variables? After implementing the change described in problem 30, Bryson Carpet Mills now finds that it can reduce setup cost to $500. Does this further change the calculations of production order quantity? How? Using the discussion of Lean Design, consider the design of a iPod competitor. Give examples of each of the following design wastes: • Complexity • Precision • Immaturity • Danger • High Skill Consider products you consume. Identify purchases you have made from firms with the following market orientations: a. Make to stock: b. Make to order: c. Assemble to order: d. Engineer to order: In each case, describe ...
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