A warehouse is evaluating the safety stock policy for all, Ask an Expert

Management Studies

A Warehouse is evaluating the safety stock policy for all its items, as identified by the SKU code. For a special SKU the company always orders 80 units each time an order is placed. The daily demand is constant, at 5 units per day; the lead time is normally distributed, with a mean of three days and a standard deviation of two days. Holding cost is $3 per unit per year. A 95% service level is to be maintained.

What is the standard deviation of demand during the lead time?

How much safety stock should be carried, and what should be the reorder point?

What is the total annual holding cost?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92575767

Have any Question?Write your Review or question?

Related Questions in Operation Management

Pfizer was established in 1849 in brooklyn new york by

Pfizer was established in 1849 in Brooklyn, New York by cousins Charles Pfizer and Charles Erhart with a loan of $2,500 from Pfizer’s father.2 Today, 167 years later, Pfizer Inc. has international revenues of $49 billion ...

1 should a small business invest its time and money in

1. Should a small business invest its time and money in acquiring and learning how to use some of the webtop applications mentioned in this case? Defend your answer based on your reviewof the webtop products from the sma ...

Fresh to table casewhile evaluating the workplace

Fresh to Table Case While evaluating the workplace supervisor's internal electronic interactions, business leaders find that a number of crucial staff members, consisting of 2 that were just recently promoted, had actual ...

Alden company uses a two-variance analysis for overhead

Alden Company uses a two-variance analysis for overhead variances. Practical capacity is defined as 32 setups and 32,000 machine hours to manufacture 6,400 units for the year. Selected data for 2016 follow: Budgeted fixe ...

Assignmentthe steadily disappearing american car ferris

Assignment The Steadily Disappearing American Car (Ferris, 2018) Background Sedans, coupes, and hatchbacks once dominated American auto industry sales Consumer preferences for light trucks and sport utility vehicles (SUV ...

1 write a short essay to compare the benefits background of

1. Write a short essay to compare the benefits, background of Target & Walmart, and discuss which company is best to work for based on the research and data collected. 2. Is BREXIT going to impact the future of American ...

Most medical groups have historically relied on a primary

Most medical groups have historically relied on a primary care physician practices for referrals. At a recent society meeting, the senior partner returned with a renewed perspective in terms of looking at the customer ba ...

- one leader must exhibit the qualities and competencies of

- One leader must exhibit the qualities and competencies of what most people would describe as being 'great' or 'exemplary.' - The second leader would be on the other end of the spectrum and be classified as 'poor' or 'n ...

You are a hospital administrator assigned to oversee

You are a hospital administrator assigned to oversee patient satisfaction and you have two health care workers that have been neglecting patients because of their difficulty in working together due to their dislike for o ...

For the strategic plan assignment you will work throughout

For the Strategic Plan assignment, you will work throughout the course to create a market entry plan (entrepreneurial), a market expansion plan for an existing organization, or a mergers and acquisitions plan that seeks ...

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