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

Management Studies

QQ-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.:- M91873125

Have any Question?Write your Review or question?

Related Questions in Operation Management

Help for the homeless hfhhelp for the homeless hfh is a

Help for the Homeless (HFH) Help for the Homeless (HFH) is a charitable organisation in Vanuatu which works with members of society who have no home and require assistance in everyday activities, such as finding food and ...

Jim and donna stoner contract to sell their house in

Jim and Donna Stoner contract to sell their house in Rochester, Michigan, to Clem and Clara Hovenkamp. Clara thinks that the decorative chandelier in the entryway is lovely and gives the house an immediate appeal. The ch ...

Case problem31 quality control at rainwater brewerybob

Case Problem3.1 Quality Control at Rainwater Brewery Bob Raines and Megan Waters own and operate the Rainwater Brewery, a microbrewery that grew out of their shared hobby of making home-brew. The brewery is located in Wh ...

Answer the following question 1- what makes jamie oliver

Answer the following Question : 1- What makes Jamie oliver management approach effective ? 2- Which area of his management approach is the most important in his management approach? 3- To what extent do professor Ariely' ...

Starbucks is a relatively new brand allegedly created

Starbucks is a relatively new brand, allegedly created without any advertising. Do some research (on Google, for example) to try to find out how the brand was built. What are the lessons for other new brands? Pick a stro ...

Topic ethical leadershipdirectionsapplication of ethical

Topic: Ethical leadership DIRECTIONS APPLICATION OF ETHICAL LEADERSHIP Competency 3008.1.2: Ethical Leadership and Code of Ethics - The graduate identifies influences on ethical leadership and analyzes a code of ethics. ...

Ziqitza health care ltdcase questions1what corruption

Ziqitza Health Care Ltd. Case Questions 1. What corruption challenges has ZHL faced so far? How has the company responded? 2. What are the underlying causes and implications? 3. What are the arguments for and against the ...

1 consider a golf club manufacturer that is running near

(1) Consider a golf club manufacturer that is running near capacity and considering an expansion of manufacturing facilities. Would it make sense to make that investment just before the peak of the current economic cycle ...

Joe aware that he is about to be sued by the alex and

Joe, aware that he is about to be sued by the Alex, and others and is being investigated by the government, decides he needs to get additional funds for his business to pay for the lawyers’ fees in defending the matter. ...

1 describe the strategies you would follow in setting

1. Describe the strategies you would follow in setting prices for your product or services? 2. What is Agile Performance Management? How is Agile PM different than traditional Performance Management? 3. Discuss the perfo ...

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