Consider the following demand and lead time data for Carnival Campers, Inc DEMAND PER DAY PROBABILITY MANUFACTURING LEAD TIME (IN DAYS) PROBABILITY 1 0 4 2 0 3 2 0 6 3 0 7 a Calculate average demand during lead time and determine the distribution for demand during lead time b For each reorder point from two to six units (assume the item is ordered 12 times per year and stock out cost is $33 per unit), what are the expected stock outs and shortage costs per year

Question: Consider the following demand and lead time data for Carnival Campers, Inc. DEMAND PER DAY PROBABILITY MANUFACTURING LEAD TIME (IN DAYS) PROBABILITY

Consider the following demand and lead time data for Carnival Campers, Inc.
DEMAND PER DAY
PROBABILITY
MANUFACTURING LEAD TIME (IN DAYS)
PROBABILITY
1
0.4
2
0.3
2
0.6
3
0.7
a. Calculate average demand during lead time and determine the for demand during lead time
b. For each reorder point from two to six units (assume the item is ordered 12 times per year and stock-out cost is $33 per unit), what are the expected stock outs and shortage costs per year?

Step by Step Solution

★★★★★

3.47 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a DL Prob 2 0048 3 01888 4 03096 5 03024 6 01512 b Selected Reorder point R Safety Stock S Demand ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

852-B-M-L-S-C-M (4427).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

Assume that you are an independent CPA performing audits of financial statements. In the course of your work, you encounter the following independent situations. Review each of the situations. If you...

Consider the following excerpts from a Wall Street Journal article on Burger King (Beatty, 1996): Burger King intends to bring smiles to the faces of millions of parents and children this holiday...

1) Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries? A) 9.0% B) 10.0% C) 4.0% D) 13.0%...

Group: PERON A+ PERSON B +PERSON C 1- Introduction 2- Literature a. Definition of operation management b. Definition of operation strategy and why it is important c. Components of operations strategy...

Scanned by CamScanner Sampling and Sampling Distribution (Ch. 5 & 9) BA1605-07 (Sampling) 1 Polls BA1605-07 (Sampling) 2 Statistical Inference Involves Estimation Population? Hypothesis testing...

Summary of the case and Recommendations to management. Cases for Part 6 Case 6-7 Microsoft Corp. this rock. billion a month in cash. Would you invest your hard-earned dollars in a company like this?...

Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...

1) A suburban specialty restaurant has developed a single drivethru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution, while service...

DSCI 2710 PRACTICE EXAM 2-A 1. One of the following statements is false and the other four are true. Identify the false statement. a. For two events, A and B, P(A and B) is equal to P(A)AP(B)...

Sinar TV maintains a stock of LED television that it sells to house owners and installs for them. The sales of the televisions for the past 60 days have the following probability distribution....

An agent for a residential real estate company in a large city would like to be able to predict the monthly rental cost for apartments, based on the size of an apartment, as defined by square...

You would like to have $900,000 in 40 years by making regular deposits at the end of each month in an annuity that pays 8 %compounded monthly. The table below shows the 2016 marginal tax rates,...

Michael, 4 5 , is deciding whether to contribute to his RRSP or TFSA. He earns $ 8 0 , 0 0 0 annually and expects his income to be lower in retirement. Which option would be most beneficial for...

10. A new concrete mix is being designed to provide adequate compressive strength for concrete blocks. The specification for a particular application calls for the blocks to have a mean compressive...

Why should an organization invest in supplier development programs? What are the challenges of supplier development activities?

What are the benefits of ISO 9000 certification?

Are environmental concerns impacting purchasing decisions? What are the benefits of ISO 14000 certification?

Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.25 per share at the end of 2013. The dividend is expected to grow at 18% per year for 3 years, after which time it is...

Baker Corp. has a value of $20 million. Tucci is otherwise identical to Baker Corp., but has $8 million in debt. Suppose that both firms are growing at a rate of 6%, the corporate tax rate is 35%,...

Can anyone explain to me how to get the NPV for this problem? I need to plug it into excel so if you could tell me how to do that as well, it would be greatly appreciated. Thanks! DATA Coxt of plant...