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Q. The manager of a car wash received a price list from the vendor who supplies soap also a promise of a shorter lead time for deliveries. Formerly the lead time was six days however now the vendor promises a reduction of 25 % in which time. Annual usage of soap is 4,500 gallons. The car wash is open 360 days a year. Suppose which daily usage is normal also which it has a standard deviation of 1.5 gallons per day.

a. Elucidate what ROP is appropriate if the acceptable risk of a stock out is 2 %?

b. At Elucidate what stock out risk safety stock would be 9 gallons.

c. If the normal lead time is 4 days with a standard deviation of 1 day, then Elucidate what would be the ROP with a 8% stock out risk?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9308692

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