Question: CURRENT BUFFER STOCK COMPARISON & RECOMMENDATIONS (25 points) Question No. 4. - Do current safety stocks protect the operation adequately from supplier delivery performance issues

CURRENT BUFFER STOCK COMPARISON & RECOMMENDATIONS
CURRENT BUFFER STOCK COMPARISON & RECOMMENDATIONS (25 points) Question No. 4. - Do current safety stocks protect the operation adequately from supplier delivery performance issues ? If not, how much safety stock do you suggest to be carried for each part number and in total stated in pieces and dollars ? Fill missing spaces in table to calculate. High Runner Purchased Parts PART NO. 141 PART NO. CCC PART NO. 2B2 Risk of Exposure to Material Shortages in Days (*) (3 days X0:25)=0.45 days (1 day X002)-0,02 day (1 day X 0 1 0 1 day Current Planned Safety Stock in Days 0.29 day Position vs Current Safety Stock Level 0.16 day short Dally Requirement 1000 pcs Suggested Safety Stock Level in Pieces (0.45 X 3500)- 1575 pcs Suggested Safety Stock Level In Dollars (1575 X $500) $ 788M 2 ? 7 ? 3500 pcs 24000 pcs ? 2 7 ? Suggested Total Safety Stock in pieces Suggested Total Safety Stock in dollars = Tip Suppested Total Safety Stock In Dollars Suzgested SS for Part 141 +Suggested SS for part ccc stapested SS for Part 202/wil in dollars)

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