Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for the BB-1 set. (BB-1 stands for Body Beautiful Number 1.) The carrying cost for BB-1 is $10 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 5 times a year. The stockout cost for BB-1 is estimated to be $15 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1:

Demand During Lead Time Probability

Value 1 100 0.1

Value 2 120 0.2

Value 3 140 0.2

Value 4 160 0.2

Value 5 180 0.2

Value 6 200 0.1?

The reorder point for BB-1 is 60 sets. What level of safety stock should be maintained for BB-1?

A. The optimal quantity of safety stock which minimizes expected total cost is       sets ( enter your response as a whole number)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92583890

Have any Question?


Related Questions in Operation Management

Charles daley slipped on snow and ice while walking on a

Charles Daley slipped on snow and ice while walking on a sidewalk outside Canal Pharmacy. Daley was paralyzed as a result of his injuries. He sued Canal Pharmacy and Eileen Fryer, the pharmacy's landlady, arguing that th ...

1 when walmart decided to incorporate grocery stores into

1. When Walmart decided to incorporate grocery stores into some locations and created “supercenters,” was this a business-level of differentiation or a corporate strategy of diversification? Explain your answer. In your ...

Businesses as well as individuals are increasingly targets

Businesses as well as individuals are increasingly targets for fraud in today's world. Search the QuickBooks website, quickbooks.intuit.com to learn about QuickBooks security features for checks and bill paying. Discuss ...

Why is a business plan and strategy so important to any

Why is a business plan and strategy so important to any business or to anyone thinking of starting a business? Why is it important to understand your business processes and functions and keep them “in house”? What are th ...

Four members of a firm of solicitors were trustees of large

Four members of a firm of solicitors were trustees of large settlement, and money was paid into the firm’s client account in their name. Those trustees misappropriated the money. Helen, another partner in the firm had no ...

You are awarded a project for earthmoving related to a

You are awarded a project for earthmoving related to a parking lot. You plan to use crawler tractor dozer with the following information (Now is the third year since you purchased the dozer): The crawler tractor dozer is ...

This assignment is critical for students to gain a

This assignment is critical for students to gain a fundamental understanding of management's and auditor's responsibility for detecting errors, material fraud, and illegal acts. This assignment provides a foundation for ...

1 what are some things that a strikemaster mag 2000 ice

1. What are some things that a strikemaster mag 2000 (ice auger) can be used for? For example please don’t just tell us that a lawn mower is used for mowing a lawn and expand on details. 2. Brief summarization taking a p ...

Part a a local tire distributor for expects to sell 9600

Part (A): A local tire distributor for expects to sell 9,600 steel-belted tires of a certain size and tread design next year. Assume that EOQ model assumptions are valid. Each tire costs $50, ordering cost is $80 per ord ...

1 analyzing the bridgestonefirestone and ford motor company

1. Analyzing the Bridgestone/Firestone and Ford motor company, is it sufficient to use the ISO/QS 9000 standards as the main basis of vendor/product selection? 2. What position to these cars company ( 1. Volkswagen, 2. F ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As