Question: Demand for computer chips is normally distributed with average 10,000 computer chips and a standard deviation of 3,333. b) Assume the company keeps a safety

Demand for computer chips is normally distributed with average 10,000 computer chips and a standard deviation of 3,333.

b) Assume the company keeps a safety inventory of 2,000 computer chips. What is the service level?

a) The company targets a service level of 90%. How much safety inventory does the company need to carry to achieve this service level? Answer in units.

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!

Question 2: A mail-order rm has four regional warehouses. Weekly demand at each warehouse is normally distributed with a mean of 10,000 units and a standard deviation of 2,000 units. The company...

TOPIC DECISION-MAKING MANAGING TEAMS GREEN MANAGEMENT ASSIGNMENT DIRECTION & Look for a case on any of the topics above. Analyze the case using the REQUIREMENT/S prescribed Case Analysis Format....

2. (25 points) A Hong Kong-based company LF purchase a computer product from China and sell it in Europe. LF is considering two ways to replenish its computer inventory in its European warehouse. The...

LF company purchase a computer product from China and sell it in Europe. LF is considering two ways to replenish its computer inventory in its European warehouse. The first way is to send computers...

A Hong Kong-based company LF purchase a computer product from China and sell it in Europe. LF is considering two ways to replenish its computer inventory in its European warehouse. The first way is...

Draw the following table on your answer sheet and fill in the rank of each parameter (1 = best, 5= worst) for each transport mode, like we started to do in class, but rank all from 1 to 5...

Table 1 Inventory records show the following: Item Category # unique variations Average Cost Avg Monthly Vol Frames (C) 3 $ 45.00 100 Derialer 5 $ 20.00 1000 Spokes 3 $ 0.14 22000 Tire Tubes 3 $ 2.00...

Answer all questions correctly please! 10:53 4 Search IH1.pdf MGT645 Individual Homework 1 Due Jan. 29 1. You manage the warehouse of St. Lawrence Public Schools and you are considering the purchase...

1. You manage the warehouse of St. Lawrence Public Schools and you are considering the purchase of Xerox paper - one of your largest selling items. Your aggregate demand is 10,000 cases per year. Due...

Answer just number 4. 10:53 4 1 Search IH1.pdf 1 of 1 MGT645 Individual Homework 1 Due Jan. 29th 1. You manage the warehouse of St. Lawrence Public Schools and you are considering the purchase of...

John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John's are keenly...

Solve previous problems I through 4 using the programs that you have developed.

1 7 . How much time does the surety have AFTER forfeiture of the bond to arrest the principal for the purpose of surrendering him to the official whose custody he was in when the bail was posted? a )...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...