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If the batch production time in East Georgia above is 0.4 weeks per type. The manufacturing cycle time for each type is 4 weeks (meaning they will produce each type every 4 weeks). The average demand for each type is 1000 with variance of 7002.

(a) What is the needed cycle stock and safety stock for each product type if the fillrate is 90%?

(b) If you can cut the batch size to half, or cycle time is 0.2 weeks per type and manufacturing cycle time to 2 weeks, what are the cycle stock and safety stock?

Operation Management, Management Studies

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