Question: 1 . Given this information: Expected demand during lead time = 355 units Standard deviation of lead time demand = 18 units Use Table. Determine
1. Given this information: Expected demand during lead time = 355 units Standard deviation of lead time demand = 18 units Use Table. Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stockout of 5 percent during lead time. (Round your answer to the nearest whole number.) ROP __________ units b. The safety stock needed to attain a 5 percent risk of stockout during lead time. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Safety stock _____________units
2. The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,500 per day. FSF supplies hot dogs to local restaurants at a steady rate of 260 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 46 cents per hot dog. The factory operates 296 days a year. a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Optimal run size__________________ b. Find the number of runs per year. (Round your answer to the nearest whole number.) Number of runs ____________________ c. Find the length (in days) of a run. (Round your answer to the nearest whole number.) Run length (in days) _____________________
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