Question: Average demand for donut is 3 0 units per day. It is assumed that 5 units as daily standard deviation of demand. Lead lime is

Average demand for donut is 30 units per day. It is assumed that 5 units as daily standard deviation of demand. Lead lime is 4 days but it may fluctuate with a standard deviation of 1.5 days. Service level is 90%. Calculate re-order point and safety stock

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!

Q:

QUESTION 1 A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of 0.98 or 98%. The order interval is 14 days, and lead time is 2 days. Average...

Q:

Question 1 3 pts Using the fixed - order - quantity model, which of the following is the total ordering cost of inventory given an annual demand of 2 5 , 0 0 0 units, a cost per order of $ 8 0 , and...

Q:

Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 25,000 units, a cost per order of $80, and a holding cost per unit per...

Q:

help fast l Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 25,000 units, a cost per order of $80, and a holding cost...

Q:

ownloads/LOGM%204225%20Assignment%2002%20(1).pdf 2/2 4. The demand of an SKU is normally distributed. The average demand for the SKU is 50 units per day and the standard deviation of the demand is...

Q:

Problem 5 ( 15 Points) A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 14 days, and lead time is 2 days. Average...

Q:

Assignable variations may be due to Select one: a. Variations in raw material b. Limitations of the process c. All of the above d. Limitations in the skills of the operator The chart used to monitor...

Q:

Question 1 Search for a company that has recently experienced a significant stock out for one of its products (It shouldn't be related to the COVID-19 situation). Describe the background of this...

Q:

A Company currently has 230 units of a product on-hand that it orders every three weeks when the salesperson visits the premises. Average demand for the product is 20 units per day with a standard...

Q:

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of 90. The order Interval is 11 days, and lead time is 1 days. Average demand for one item is 76...

Q:

Write a paper on the ethical dilemma police force in the criminal justice system. Prove the existence of the dilemma and a solution to the dilemma.

Q:

Why has the price/cash flow ratio become a popular measure of relative value during the recent past? What factors would help explain a difference in this ratio for two firms?

Q:

Getries and Schedies Nor Untinthee Jetie ard Comedted IUEs Material ponhered in aconet, il ooe. \ table [ [ 3 ob Nin,Materialy,Faibery Labor ] , [ 1 0 1 , 5 1 , 9 5 0 , $ 2 , 1 5 0 ] , [ 1 0 2 , 2 ,...

Q:

Family Services, a small social service nonprofit agency, began operations on January 1 , 2 0 X 1 , with $ 4 0 , 0 0 0 cash and $ 1 5 0 , 0 0 0 worth of equipment, on which $ 6 0 , 0 0 0 was owed on...