The annual demand for a product is 14200 units. the weekly, Ask an Expert

Management Studies

The annual demand for a product is 14,200 units. The weekly demand is 273 units with a standard deviation of 95 units. The cost to place an order is $32.00, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.

a.
Find the reorder point necessary to provide a 95 percent service probability. (Round your answer to the nearest whole number.)

b.
Suppose the production manager is asked to reduce the safety stock of this item by 45 percent. If she does so, what will the new service probability be? (Round your answer to 3 decimal places.)

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9374727

Have any Question?Write your Review or question?

Related Questions in Operation Management

The grand movie theater has one box office clerk on average

The Grand Movie Theater has one box office clerk. On average, each customer that comes to see a movie can be sold its ticket at the rate of 8 per minute. For the theater's normal offerings of older movies, customers arri ...

Create a risk register for the project using table 11-5 and

Create a risk register for the project, using table 11-5 and the data after it as a guide. Identify six three potential risks, including risks related to the problems described in the preceding paragraph. Describe the ri ...

Michael went to brennanrsquos market to pick up a few items

Michael went to Brennan’s Market to pick up a few items for dinner. It was raining, and the wind had blown water through the market’s door whenever it was opened. As Michael entered through the door, he slipped and fell ...

1 what is mental availability also referred to as brand

1. What is mental availability (also referred to as brand salience) and how does it relate to buying situations? 2. Describe the process of a brand being stored into memory? 3. How does organizational culture affect the ...

Create a comparative table that shows the various

Create a comparative table that shows the various definitions, risks, and value of each of the following quality management tactics: Establishing customer expectations Designing quality Defining metrics Mistake-proofing ...

According to nancy reardon 2011 senior vice president and

According to Nancy Reardon (2011), senior vice president and chief human resources and communications officer at Campbell Soup Company, the goal the company’s CEO Institute is to “create the most meaningful leadership ex ...

For the economic order size determined in a previous

For the Economic Order Size determined in a previous question 1(48.0 lbs), determine: (Hint: total cost has two terms such as fixed ordering cost and holding cost) Days of Operation= 365 days D= Demand Per Year= 2,000 po ...

1 what may be some specific risks associated with the

1. What may be some specific risks associated with the business-level strategy for an oil and gas company? How might these be mitigated? 2. Which poses the greater potential risk and liability for PI: premises liability ...

1 describe the theory of ppp - purchasing power parity2

1. Describe the theory of PPP - purchasing power parity 2. Describe a International Global operations and supply chain for McDonald's 3. How should immigration law be reformed? Does the United States have any ethical dut ...

1 explain the principles of the just in time philosophy2

1. Explain the principles of the Just in Time Philosophy 2. Explain the basic OM decision-making tools and how these tools are used in delivering products and sevice. 3. Should the United States normalize relations with ...

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