Suppose that the manager of a construction supply house determined from historical records that demand for...
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Suppose that the manager of a construction supply house determined from historical records that demand for sand during the lead time averages 50 tons. In addition, the demand during lead time could be described by a normal distribution that has a standard deviation of 5 tons. Assuming that the manager is willing to accept a stockout risk of no more than 3 percent: - What value of z is appropriate? - How much safety stock should be held? What reorder point should be used? Suppose that the manager of a construction supply house determined from historical records that demand for sand during the lead time averages 50 tons. In addition, the demand during lead time could be described by a normal distribution that has a standard deviation of 5 tons. Assuming that the manager is willing to accept a stockout risk of no more than 3 percent: - What value of z is appropriate? - How much safety stock should be held? What reorder point should be used?
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a The value of z is appropriate for the desired stockout risk of no more than 3 percent To find the ... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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