Ask Operation Management Expert

Southern Fresh has decided to make a policy that every product will receive enough shelf space to ensure that 98.75 percent of customers will find that their first choice is available. Consider Hot Bull corn chips. Demand is normally distributed. Average daily demand for this is product 55, with a standard deviation of 30. Bags of Hot Bull chips can be stacked 20 deep per facing. (A facing is the width on a shelf required to display one item of a product) Deliveries from Southern Fresh's central warehouse occur two days after a store manager submits an order. 

Per Professor: am getting several clarification question on problem 13.10.  essentially part (a) asks for the order-up-to level (in facings) to satisfy a fill rate of 98.75% while part (b) asks for the order-up-to level (in facings) to satisfy an instock probability of 98.75%.

A. How many facings should Southern Fresh allocate to Hot Bull corn chips?

B. How many facings are needed to achieve a 98.75 percent in-stock probability?

C. Suppose Southern Fresh allocates 11 facings to Hot Bull corn chips. On average, how many bags of Hot Bull are on the shelf at the end of the day?

D.    Although Southern Fresh does not want to incur the cost of holding inventory, it does want to leaver customers with the impression that it is well stocked. Hence, Southern Fresh employees continually roam the isles of the store to adjust the presentation of the product. In particular, they shift product around so that there is an item in each facing whenever possible. Suppose Southern Fresh allocates 11 facings to Hot Bull corn chips. What is the probability that at the end of the day there will be an empty facing, that is, a facing without any product?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9522441

Have any Question?


Related Questions in Operation Management

Conflictdefine functional versus dysfunctional conflict in

Conflict Define functional versus dysfunctional conflict in a work group and explain how you can increase functional conflict and decrease dysfunctional conflict. Develop a response that includes examples and evidence to ...

For this assignment you will need to find 2 articles in

For this assignment, you will need to find 2 articles in business that can help describe what are IT strategic initiative being undertaken by an organization are like. Choose a different organization for each of the arti ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Over 30 years ago michael porter identified a holistic

Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility i ...

You are the contracting officer for an air-to-ground

You are the contracting officer for an air-to-ground missile development program. A contract for pre-production models of the missile was awarded by your predecessor and the contractor is behind schedule. In a program me ...

The ikea case provides an excellent opportunity to apply

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 cou ...

Can you answer for me the following questions about social

Can you answer for me the following questions about social loafing and the three main causes of free-riding. 1. Give a description of the phenomenon of social loafing. 2. Give a description of the phenomenon of free-ridi ...

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 ...

Research the effect of primary and secondary seat belt laws

Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities. Explain how epidemiologic studies influenced the development of current seat belt laws. Describe how ...

Please provide a brief paragrap of the key takaways from

Please provide a brief paragrap of the key takaways from each of the following topics: Designing Clear Visuals in business reports Designing Successful Documents and Websites Writing Winning Proposals

  • 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