Q-mart is a local grocery store it sells a certain type of, Ask an Expert

Management Studies

Q-Mart is a local grocery store. It sells a certain type of cheese. Excess demand can be backordered. The monthly demand of the cheese follows a normal distribution with mean of 250 and variance of 225. QQ-Mart reviews its inventory continuously and will place order with size Q when the inventory level hits R. The fixed cost per ordering is $10. The unit purchase price is $5. The annual interest rate of 10% is used to estimate the holding cost. The lead time for purchasing the cheese from the manufacturer is one week. QQ-mart wants to achieve a service level target that no stock-out in 95% the cycles. (Assume there are four weeks in one month.)

1) What is the mean and variance of the demand in lead time?

2) What is Q and R such that the desired service level can be achieved?

3) What is the safety stock?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91813820

Have any Question?Write your Review or question?

Related Questions in Operation Management

Your firm designs manufactures and markets childrenrsquos

Your firm designs, manufactures, and markets children’s toys for sale in the U.S. Almost 90% of your production is done in China. During the 1990s, U.S. relations with China improved. Even though there were many disagree ...

Self-analysis amp reflection 1500 wordsthe key aspect of

Self-Analysis & Reflection. (1500 words) The key aspect of reflection is a critical evaluation of the self. Students will undertake several in-class cases during the semester and must use two (2) of the nominated cases a ...

Assume that the contemporary apparel company juicy couture

Assume that the contemporary apparel company Juicy Couture has embarked upon a new Integrated Marketing Campaign. The message is designed to announce new styles for the "back to school season" and uses a 16-year-old woma ...

A car manufacturer is considering one of two systems for

A car manufacturer is considering one of two systems for its windshield assembly line. The first is a robotic system that should save money due to a reduction in labor and materials costs. The robotic system will cost ...

Read through the tree trimming project case this case

Read through the Tree Trimming Project case. This case refers to the earned value (EV) of the owner, Will Fence’s Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in ...

In life we are constantly confronted with all kinds of

In life, we are constantly confronted with all kinds of what-ifs. Based on what you have experienced this semester, what words of wisdom you would like to impart on future students this course( the class is Statistics th ...

Your health care organization has had several small

Your health care organization has had several small compliance incidents in the past two years, and the organization is now motivated to update their compliance program. Your executive leadership team asked you to review ...

1 what might be three components of supplier risk choose

1. What might be three components of supplier risk (choose the best answer)? A. Access to infrastructure, number of suppliers, immediate indispensability to business B. financial, security, frequency C. financial, incide ...

1 why is it important for managers to understand national

1. Why is it important for managers to understand national cultures around the world? 2. Why is organizational change important at the supervisors, managers, and directors level? 3. List the barriers which occurs in the ...

Power in organizations paperthere are three fundamental

Power in Organizations Paper There are three fundamental sources of power (or five when you look at expert and referent power) in any organization. Choose an organization you have worked for or researched and analyze the ...

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