Question: A new logistics analyst has approached you regarding a potential problem. Her analysis indicates the cost of a back order is $40 for our Autographed

A new logistics analyst has approached you

A new logistics analyst has approached you regarding a potential problem. Her analysis indicates the cost of a back order is $40 for our Autographed Footballs, but she is not sure what the appropriate safety stock should be. Given this back order cost, what would you suggest as the appropriate level of safety stock? Football cost $200 Annual Demand 5000 units Cost per Order $250 Cost to hold the item per year 40% Economic order quantity Lead Time 2 weeks Standard Deviation of Forecasted Demand During Lead Time 177 Kto Service Level Conversion R 0.0 0.00 0.5000 0.5398 0.5793 0.01 0.5040 0.5438 0.5832 0.02 0.03 0.500005120 0.5478 0.5517 0.58710 .5910 0.2 0.04 0.05 0.06 0.07 0.08 0-51000 5199 5209021905319 0.5399 5557 556 5636 5675 05714 0.5068 587 .0026 0.0064 0.0103 0.6141 08131 6 406 0.6443 0.6700 0.6736 0.6772 0.6808 0.6844 0.7054 0.7088 0.7123 0.7157 0.7190 0.6179 0.621T 0.6255 AM 0.6554 0.6591 0.0028 0064 0.5 0.6915 0.6950 0.6985 0.7019 0.7257 0.7291 0 .7324 0.7357 0.7389 0.7422 0.7454 0.77040.77340.7754 0.7486 0.7517 0.77940.7873 0.7580 0.7611 0.7542 0.7673 0.7881 0.7910 0.7939 0.7967 0.7996 0.0023 0.8051 0.8078 0.8105 0.8212 0.8238 0.8254 0.8289 0.8315 0.8340 0.8365 0.84130 .8438 0.8461 0.8486 0.85080 .8531 0.8554 0.8577 0.8599 0.8665 0.8686 0.87OB 0.8729 0.87490.8TTO 0,8790 10 08849 0.8869 0.8888 0.8907 0.8925 0.8944 0.89620.8980 0.8997 0.9032 0.9049 0.9066 0.9082 0.9099 0.9115 0.9131 0.9147 0.9162 1.4 0.91920.9207 0.9222 0.0236 0.0765 0.9278 0.9292 0.0306 0.9319 0.9251 0.9302 1.5 0.9332 0.9345 0.9357 0.9370 0.99940.5405 0.94180 9479 09441 1, 6 09452 0.946300474 0.94840.9495 0.9505 0.9515 0.9525 0.9535 0.9554 0.9564 0.9573 0.9582 0.9591 0.9599 0.9608 0.9616 0.9625 1, 8 1.9 0 9541 0.9649 0.9656 0.97130.97190.9726 0.9664 0.9732 0.9671 0.9738 0.9678 0.9744 0.9686 0.9750 0.9693 0.9699 0.97560.9761 0.9706 0.9767 k N(K) Conversion .00 .01 .02 .03 .04 .05 .06 .07 .09 0039893540389038413793 3744 369738493802 3509 3484341833733328328432403197 3069 3027 2906 2 944 2004 2003 2024 2714 0. 3 2668 2630 2592 2510 2374 2304 2270 2238 2203 2169 2137 2104 2 072 2555 2401 1978 1742 RELEASEDBABERI 1947 165 091004 1587 .1528 1503 1478 1429 .1405 1301 1358 1312 .1295 1257 1245 081202 .1181 1150 1140 .1120 1100 1000 1061 1042 O 0968009503 19 10 D33200174 08019 0785607716 6756807422 07279 07138 1.1 062 62 55 05465 06136 06210 OGOS 0595405844 120561005456 05384 0527405165 5059 9495404851 04750 13 045535445T34353 04270 04179 040SO64002 00915 03801 14 035735835688361 03396032810320803209 09137 15 0293132865 32000 3236 0267402612 025520249402436 0238 A new logistics analyst has approached you regarding a potential problem. Her analysis indicates the cost of a back order is $40 for our Autographed Footballs, but she is not sure what the appropriate safety stock should be. Given this back order cost, what would you suggest as the appropriate level of safety stock? Football cost $200 Annual Demand 5000 units Cost per Order $250 Cost to hold the item per year 40% Economic order quantity Lead Time 2 weeks Standard Deviation of Forecasted Demand During Lead Time 177 Kto Service Level Conversion R 0.0 0.00 0.5000 0.5398 0.5793 0.01 0.5040 0.5438 0.5832 0.02 0.03 0.500005120 0.5478 0.5517 0.58710 .5910 0.2 0.04 0.05 0.06 0.07 0.08 0-51000 5199 5209021905319 0.5399 5557 556 5636 5675 05714 0.5068 587 .0026 0.0064 0.0103 0.6141 08131 6 406 0.6443 0.6700 0.6736 0.6772 0.6808 0.6844 0.7054 0.7088 0.7123 0.7157 0.7190 0.6179 0.621T 0.6255 AM 0.6554 0.6591 0.0028 0064 0.5 0.6915 0.6950 0.6985 0.7019 0.7257 0.7291 0 .7324 0.7357 0.7389 0.7422 0.7454 0.77040.77340.7754 0.7486 0.7517 0.77940.7873 0.7580 0.7611 0.7542 0.7673 0.7881 0.7910 0.7939 0.7967 0.7996 0.0023 0.8051 0.8078 0.8105 0.8212 0.8238 0.8254 0.8289 0.8315 0.8340 0.8365 0.84130 .8438 0.8461 0.8486 0.85080 .8531 0.8554 0.8577 0.8599 0.8665 0.8686 0.87OB 0.8729 0.87490.8TTO 0,8790 10 08849 0.8869 0.8888 0.8907 0.8925 0.8944 0.89620.8980 0.8997 0.9032 0.9049 0.9066 0.9082 0.9099 0.9115 0.9131 0.9147 0.9162 1.4 0.91920.9207 0.9222 0.0236 0.0765 0.9278 0.9292 0.0306 0.9319 0.9251 0.9302 1.5 0.9332 0.9345 0.9357 0.9370 0.99940.5405 0.94180 9479 09441 1, 6 09452 0.946300474 0.94840.9495 0.9505 0.9515 0.9525 0.9535 0.9554 0.9564 0.9573 0.9582 0.9591 0.9599 0.9608 0.9616 0.9625 1, 8 1.9 0 9541 0.9649 0.9656 0.97130.97190.9726 0.9664 0.9732 0.9671 0.9738 0.9678 0.9744 0.9686 0.9750 0.9693 0.9699 0.97560.9761 0.9706 0.9767 k N(K) Conversion .00 .01 .02 .03 .04 .05 .06 .07 .09 0039893540389038413793 3744 369738493802 3509 3484341833733328328432403197 3069 3027 2906 2 944 2004 2003 2024 2714 0. 3 2668 2630 2592 2510 2374 2304 2270 2238 2203 2169 2137 2104 2 072 2555 2401 1978 1742 RELEASEDBABERI 1947 165 091004 1587 .1528 1503 1478 1429 .1405 1301 1358 1312 .1295 1257 1245 081202 .1181 1150 1140 .1120 1100 1000 1061 1042 O 0968009503 19 10 D33200174 08019 0785607716 6756807422 07279 07138 1.1 062 62 55 05465 06136 06210 OGOS 0595405844 120561005456 05384 0527405165 5059 9495404851 04750 13 045535445T34353 04270 04179 040SO64002 00915 03801 14 035735835688361 03396032810320803209 09137 15 0293132865 32000 3236 0267402612 025520249402436 0238

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