Question: Reorder Point = Lead Time - Demand during Lead Time + Safety Stock Reorder Point LED + ZVLSD + Des? Management has instructed you to
Reorder Point = Lead Time - Demand during Lead Time + Safety Stock Reorder Point LED + ZVLSD + Des? Management has instructed you to use a Z value of 1.65 for all safety stock calculations which corresponds to a 95verica level (chance of running out of safety stock - 5%. Solve the following problem... Bob's Diner (BD) is a low-key restaurant selling hamburgers. BD keeps an inventory of its best-selling product, the ni pound monster burger patty, in the freezer and reorders as needed when inventory runs low. Specifically. Bob's not that is place another order when there are only 200 monster patties left. Average daily demand for the monster burger is 50 units with a standard deviation of 15 units, and the average replenishment lead time is three days with a standard deviation of 1 Lately. Bob has noticed that he runs out of monster patties nearly twice a week on average. Wanting to keep his customen happy, Bob decides to strive for a 95% in-stock rate service level) moving forward. What should Bob's new reorder point be (instead of 200)? If your answer has any decimal value, round up for safety stock calculation. For example, 2.3 rounds up to 10. 211 243 265 280 None of the above Reorder Point = Lead Time - Demand during Lead Time + Safety Stock Reorder Point LED + ZVLSD + Des? Management has instructed you to use a Z value of 1.65 for all safety stock calculations which corresponds to a 95verica level (chance of running out of safety stock - 5%. Solve the following problem... Bob's Diner (BD) is a low-key restaurant selling hamburgers. BD keeps an inventory of its best-selling product, the ni pound monster burger patty, in the freezer and reorders as needed when inventory runs low. Specifically. Bob's not that is place another order when there are only 200 monster patties left. Average daily demand for the monster burger is 50 units with a standard deviation of 15 units, and the average replenishment lead time is three days with a standard deviation of 1 Lately. Bob has noticed that he runs out of monster patties nearly twice a week on average. Wanting to keep his customen happy, Bob decides to strive for a 95% in-stock rate service level) moving forward. What should Bob's new reorder point be (instead of 200)? If your answer has any decimal value, round up for safety stock calculation. For example, 2.3 rounds up to 10. 211 243 265 280 None of the above
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