Question: a. For a manufacturing process producing machine screws of diameter 2 mm, the DPMO was determined to be 828. What is the sigma rtaing of

a. For a manufacturing process producing machine screws of diameter 2 mm, the DPMO was determined to be 828. What is the sigma rtaing of the manufacturing process?

Sigma-rating is = ______ -

b. The daily demand of a product is normally distributed with a mean of 25 and a standard deviation of 6.25. If the shipment lead time is 16 days; the retailer employs a 96% service rate. The holding cost is $0.95 per unit per year. (1) Keeping mind that the retailer uses safety stock, the reorder point, ROP = _____ units (round your answer to the nearest integer) (2) The safety stock, SS =_____ umits (round your answer to the nearest integer) (3) The increment in the inventory management cost is = $ ____ .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related General Management Questions!