Question: Given this information: Lead- time demand 600 pounds Standard deviation of lead time demand 52 pounds (Assume normality.) Acceptable stockout risk during lead time 4

Given this information:

Lead- time demand 600 pounds

Standard deviation of lead time demand 52 pounds (Assume normality.)

Acceptable stockout risk during lead time 4 percent

a. What amount of safety stock is appropriate?

b. When should this item be reordered?

c. What risk of stockout would result from a decision not to have any safety stock?


Step by Step Solution

★★★★★

3.38 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Given EDDLT 600 lb s dLT 52 lb Stock out risk 4 a Determine SS for 4 r... View full answer

blur-text-image
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)

Word file Icon

372-B-M-L-O-M (3340).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

Q:

QUESTION 4 Consider the following Excel spreadsheet. 1 2 3 A SKU A-11 B-32 C-44 B C D Quantity Price Revenue 5 9 12 12 31 24 60 279 288 A. 67, 67, 67 B. 67, 26,627 OC. 36, 17, 348 OD. None of the...

Q:

Under GASB guidance when should an item be recognized on the face of the financial statements? Under what conditions, would the GASB indicate that a note disclosure should accompany an item that has...

Q:

Briefly describe three problems that might result from a decision to buy a component part from an external supplier. For each problem, identify one way to avoid or correct it.

Q:

Given this information Lead time demand = 900 lbs. Standard deviation of lead time demand = 50 lbs. (assume normality) Acceptable stockout risk during lead time = 2.5% When should this item be...

Q:

Given the following information: Lead - time demand = 6 0 0 pounds Standard deviation of lead time demand = 5 2 pounds ( assume normality ) Acceptable stockout during lead time = 4 percent a . What...

Q:

Given this information: What amount of safety stock is appropriate? Lead-time demand = 600 pounds Standard deviation of lead time demand = 52 pounds (Assume normality.) Acceptable stockout risk...

Q:

Given this information: Lead-time demand = 500 pounds Standard deviation of lead time demand = 65 pounds (Assume normality.) Acceptable stockout risk during lead time = 3 percent Note for a 4%...

Q:

xGiven this information: Lead - time demand = 6 2 0 pounds Standard deviation of lead time demand = 4 9 pounds ( Assume normality. ) Acceptable stockout risk during lead time = 5 percent Use Table. a...

Q:

Given this information: Lead-time demand= 605 pounds Standard deviation of lead time demand =46 pounds (Assume normalty) Acceptable stockout risk dueing lead time = 2 percent a. What amount of safety...

Q:

Given this information: Lead-time demand = 560 pounds The standard deviation of lead time demand = 37 pounds (Assume normality.) Acceptable stockout risk during lead time = 3 percent Use Table. What...

Q:

List six major benefits of acquiring another firm to achieve desired objectives.

Q:

Sprinkler Corporation produces plastic garden sprinklers. The company is preparing its budget for 2022. The first step is to plan for the first quarter of that coming year. Sprinkler has collected...

Q:

How does Tesco differentiate between its customers? (Consider the ClubCard magazines, the quarterly ClubCard statements, Coupons@Till, etc.)

Q:

Imagine you are in the tepee when the legends are being told. Using standard English, describe the scene around you. How do you feel? What can you see? What can you hear? Think about the register you...

Q:

Job times (including processing and setup) are shown in the following table for five jobs waiting to be processed at a work center. Determine the processing sequence that would result from each of...

Q:

Summarize some of the unique problems encountered in service systems, and describe some of the approaches used for scheduling service systems.

Q:

Discuss the theory of constraints and that approach to scheduling.

Q:

Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners...

Q:

Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should...

Q:

hi this is one question only please solve it 0=200+6.00xy600rF4=3003000 Poces are giente te: T=35=0.10Y Moneydervard a rM2=028200r+r2i y=k y=r Conumphon a Core jour resporse rounsed ti sne decmalpe....