The amount of denim used daily by the southwest apparel, Ask an Expert

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The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make jeans is normally distributed with an average of 4000 yards of denim and a standard deviation of 600 yards. The lead time required to receive an order of denim from the textile mill is a constant 7 days.

1. Determine the safety stock and reorder point if the company wants to limit the probability of a stockout and work stoppage to 5%.

2. What level of service would a safety stock of 2000 yards provide?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92473731

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