Question: Given the following: Average demand per period, D = 5000, Standard deviation of demand per period, sigmaD = 1000 , Average lead time for replenishment,

Given the following: Average demand per period, D = 5000, Standard deviation of demand per period, sigmaD = 1000 , Average lead time for replenishment, L = 14 days , Standard deviation of lead time, sigmaL = 14 days, and Desired Cycle Service Level (CSL) = 0.90, what is the required safety inventory (ss)?

a. 85000

b. 95000

c. 90000

d. 100000

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:

Given the following: Average demand per period, D = 5000, Standard deviation of demand per period, sigmaD = 1000 , Average lead time for replenishment, L = 14 days , Standard deviation of lead time,...

Q:

Given the following: Average demand per period, D = 5000, Standard deviation of demand per period, sigma D = 1000 , Average lead time for replenishment, L = 14 days , Standard deviation of lead time,...

Q:

D = Average demand per period sD = Standard deviation of demand (forecast error) per period L = Average lead time - between when an order is placed and when it is received sL = Standard deviation of...

Q:

D = Average demand per period sD = Standard deviation of demand (forecast error) per period L = Average lead time - between when an order is placed and when it is received sL = Standard deviation of...

Q:

1. We inherited a ROP of 2200, with an average daily demand of 200 units, a standard deviation of demand of 30 units, and a lead time of 10 days. How well are we satisfying our customers with this...

Q:

2) Also answer the following: For a continuous-review inventory system, information is provided below: Input Demand per period (week), D=2500 Boxes Standard deviation of demand, D= Boxes Average...

Q:

Excel Online Activity: FPS Safety Stock Southern Office Supplies Inc. distributes office supplles to customers in the Southeast. One popular SKU is laser printer paper. Ordering costs are $50,00 per...

Q:

One of the following is a pressure for high inventories a Customer service OD Storage and handling OC None to insurance and shrinkage e cost of capital o 9 When the demand is less fluctuating, then...

Q:

6.4.2.3 Reorder Level - Variable Demand and Lead Time In the previous sections, we considered the variability of either demand or the lead time. In this section, we consider the case where both...

Q:

Please answer each question Southern Office Supplies Inc. distributes office supplies to customers in the Southeast. One popular SKU is laser printer paper. Ordering costs are $51.00 per order. One...

Q:

Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $295,000 per year. Highline states that its bid will...

Q:

Using the same data presented above in BE14-3 for Goody Company, illustrate vertical analysis. In BE14-3, Using the following data from the comparative balance sheet of Goody Company, illustrate...

Q:

Kathi, age 6 5 , first began formal employment at age 2 2 . She anticipates living to age 9 0 . What is Kathi s Retirement Life Expectancy ( RLE ) ? Group of answer choices 6 8 2 5 9 0 4 3

Q:

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...