Annual demand for a product is 13000 units weekly demand is, Ask an Expert

Management Studies

Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service probability, what must the reorder point be?

Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91639197

Have any Question?Write your Review or question?

Related Questions in Operation Management

The gap is trying to decide which products to carry at its

The Gap is trying to decide which products to carry at its 900 retail stores or at its central warehouse to only be sold online. Weekly demand for large Khaki pants at each store is normally distributed with a mean of 80 ...

1 what is involved in developing a business plan for

1. What is involved in developing a business plan for production and supply of products? What role do retailers play in achieving the important flexibility that is so important to efficient and timely supply of products? ...

1 what information is shown on an income statement a

1. What information is shown on an income statement, a balance sheet, and a cash flow statement? 2. Do you agree or disagree with Uber's surge pricing policy? What are the reasons it can be perceived as unfair? What does ...

Case study operations strategy in actionalmost every

CASE STUDY [Operations Strategy in Action] Almost every company seems to be restructuring itself to face the downturn, be it through financial engineering, or by retrenching to core activities. So they sell off foreign s ...

Effective managers can successfully locate and apply

Effective managers can successfully locate and apply relevant human resources laws and regulations. The United States Department of Labor website is an excellent source of reliable information. Access the search box of t ...

1 how can an operation strategy encourage the learning

1. How can an operation strategy encourage the learning necessary to ensure the operations knowledge is carried forward over time? 2. Suppose you work for an online sporting goods retailer. You’ve been hired as a busines ...

Please describe each of the big 5 personality traits for

Please describe each of the "Big 5" personality traits. For each trait, provide an example of how it might contribute positively to an individual's performance. 125 to 150 word or morew Develop a response that includes e ...

Henrietta was a risk taker while her son freidrich

Henrietta was a risk taker while her son Freidrich wasn’t. What challenges or disadvantages would a company have that was a risk taker in terms of cost of capital and investments? What about the challenges or disadvantag ...

Scenario university hospital has a very busy obstetrical

Scenario: University Hospital has a very busy obstetrical unit, with dozens of nurses, secretaries, technicians, dietary staff, surgeons, midwives, and others traveling the halls at any time. Employees must wear picture ...

Burrito king a new fast-food franchise opening up

Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fast-food establishments. The Burro-Master 9,000 requires a constant 45 seconds to produce a b ...

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