Question: answer was never given SAFETY LEAD TIME You are in charge of ordering material for a major project. One task that you are responsible for
answer was never given
SAFETY LEAD TIME You are in charge of ordering material for a major project. One task that you are responsible for is ordering steel beams for a plant expansion. To install the beams, you will rent a crane at $10,000 a day, with the rental contract date required months in advance. You pay for the crane and crew whether they work or not. Additionally, each day of delay costs you $40,000 in other contractor costs due to the beams not being installed. If the beams show up early, they cost you S1200 a day in inventory carrying costs interest, storage, security, etc.). The normal lend time for the steel beam delivery is 30 days (ordering, custom manufacturing, and delivery) with a standard deviation of 12 days. [A] Using the safety lead time strategy, when should you order the steel beams? (10 points) [B] In a paragraph, explain why you would order at that time. (5 points) Show all calculations
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