Daily consumption of fasteners at Boeing commercial airplane manufacturing facility is normally distributed with a mean of
Question:
a. Assuming that Boeing wants to keep a 98% in- stock probability, determine the target order up-to level and the resulting cycle and safety stock. What is the total inventory holding cost of following this policy?
b. There is a proposal to institute process improvements such that inventory could be reviewed and orders placed every week. Determine the total savings in inventory of this process change.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managing Business Process Flows Principles of Operations Management
ISBN: 978-0136036371
3rd edition
Authors: Ravi Anupindi, Sunil Chopra, Sudhakar Deshmukh, Jan Van Mieg
Question Posted: