A local service station is open 7 days per week 365 days, Ask an Expert

Management Studies

A local service station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil average 20 cans per day. Inventory holding cost are S0.5 per can per year Ordering costs are sioben Inventory Ordering costs are $10 per order. Lead time is two weeks. Backorders are not practical the motorist drivers away

(a) Currently it is assumed by the manager that demand is deterministic. Choose the optimal order quantity and reorder point.

(b) The manager becomes concerned because demand really varies. The standard deviation of demand during the lead time was determined from a data sample to be 24 cans. Determine the new reorder point for a service level of 95%.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92585997

Have any Question?Write your Review or question?

Related Questions in Operation Management

Garden variety flower shop uses 890 clay pots a month the

Garden Variety Flower Shop uses 890 clay pots a month. The pots are purchased at $3.70 each. Annual carrying costs per pot are estimated to be 50 percent of cost, and ordering costs are $30 per order. The manager has bee ...

Amber briggs looked nervously at her watch as she sat at

Amber Briggs looked nervously at her watch as she sat at the front of a large table in the cafeteria at Kerzner Office Equipment. It was now 10 minutes after 3:00 and only 10 of the 14 members had arrived for the first m ...

This discussion board is open for any questions or comments

This discussion board is open for any questions or comments in a new thread, but please address the following: 1. Should we allow business to be conducted with limited liability entities? This arrangement obviously benef ...

1 list 4 advantages and 4 drawbacks an international

1. List 4 advantages and 4 drawbacks an international company (brewery) will have if it decides to cooperate with another company to enter and expend in this company's market. 2. When would a salesperson find the complim ...

The sales of mouthwash at markal pharmacy over the past 6

The sales of mouthwash at MARKAL Pharmacy over the past 6 months have average 2,000 cases per month, which is the current order quantity. Markal's cost is $12.00 per case. The company estimates its cost of capital to be ...

The priorities of organizations are important and

The priorities of organizations are important, and organizational theory defines the methods that organizations should use to determine and define their priorities and communicate them to stakeholders. Please briefly des ...

1 define global start-up identify 3 characteristics of a

1. Define global start-up. Identify 3 characteristics of a global start-up 2. Would a reasonable member of the BCC board be comfortable keeping Bryant as CEO once they learned that he lied about having a college degree? ...

1 pick a nongovernmental organization ngo with worldwide

1. Pick a nongovernmental organization (NGO) with worldwide recognition, such as the Red Cross, Doctors Without Borders, or Amnesty International. Go online and find out how the organization works on behalf of peace. Wha ...

Harley-davidson has chosen to compete in various country

Harley-Davidson has chosen to compete in various country markets in Europe and Asia using an export strategy. Go to the Investor Relations section at www.harley-davidson.com and read the sections of its latest annual rep ...

1 discuss what challenges marketers face with international

1. Discuss what challenges marketers face with international market segmentation. 2. How is demographic segmentation used in consumer markets, provide examples where marketers have used demographic segmentation 3. You ru ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert