Demand for motors at the ouachita manufacturing plant in, Ask an Expert

Management Studies

Demand for motors at the Ouachita Manufacturing plant in Phoenix, AZ can be approximated by a normal distribution with a mean of 47 units per day and a standard deviation of 8 motors per day. Ouachita management desires a service level of 95%. Lead time from supplier is four days; the company operates seven days a week throughout the year.

a. What reorder point would be consistent with the desired service level?

b. What is the size of the safety stock?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93127406

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