Question: Given this information: Lead-time demand = 560 pounds Standard deviation of lead time demand = 37 pounds (Assume normality.) Acceptable stockout risk during lead time

Given this information: Lead-time demand = 560 pounds Standard deviation of lead time demand = 37 pounds (Assume normality.) Acceptable stockout risk during lead time = 3 percent

a. a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.)

b. b. How much of this item should be reordered? (Round your answer to the nearest whole number.)

c. What risk of stockout would result from a decision not to have any 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!

Help Save & EX Check Given this information: Lead-time demand = 650 pounds Standard deviation of lead time demand = 55 pounds (Assume normality) Acceptable stockout risk during lead time = 3 percent...

Given this information: Lead-time demand = 500 pounds Standard deviation of lead time demand = 65 pounds (Assume normality.) Acceptable stockout risk during lead time = 3 percent Note for a 4%...

Given this information: tead-time demand $ =595 $ pounds Standard deviation of lead time demand $ =44 $ pounds (Assume normality.) Acceptable stockout risk during lead time $ =1 $ percent Use Ta

Given this information: Lead-time demand = 560 pounds Standard deviation of lead time demand = 37 pounds (Assume normality.) Acceptable stockout risk during lead time = 3 percent Use Table a. What...

Given this information: Lead-time demand = 560 pounds Standard deviation of lead time demand = 37 pounds (Assume normality.) Acceptable stockout risk during lead time = 3 % Use the appropriate Normal...

Given this information: Lead - time demand = 6 1 0 pounds Standard deviation of lead time demand = 5 0 pounds ( Assume normality. ) Acceptable stockout risk during lead time = 4 percent Use Table. a...

Given this information: Lead-time demand =560 pounds Standard deviation of lead time demand= 37 pounds( Assume normality.) Acceptable stockout risk during lead time =3% Use the appropriate Normal...

Chapter 12 Problem 2 1 Problem 12-20 (Algo) 50 points Given this information: Lead-time demand = 610 pounds Standard deviation of lead time demand 50 pounds (Assume normality.) Acceptable stockout...

Given this information: Lead-time demand = 625 pounds Standard deviation of lead time demand = 50 pounds (Assume normality.) Acceptable stockout risk during lead time = 5 percent Use Table. a. What...

3 Given this information: Lead-time demand = 550 pounds Standard deviation of lead time demand = 35 pounds (Assume normality.) Acceptable stockout risk during lead time = 1 percent Use Table a. What...

Explain why immunization permits a bond investor to be confident of meeting a given liability on a predetermined future date.

Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year. Direct...

Dale earns a net income of $ 3 0 , 0 0 0 annually. He lived with and supported his common - law partner, Katie, for 1 8 months however, they have suffered a breakdown in their relationship and Dale...

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...