The annual demand for a product is 14500 units the weekly, Ask an Expert

Management Studies

The annual demand for a product is 14,500 units. The weekly demand is 279 units with a standard deviation of 85 units. The cost to place an order is $32.00, and the time from ordering to receipt is six weeks. The annual inventory carrying cost is $0.20 per unit.

a. Find the reorder point necessary to provide a 95 percent service probability. (Use Excel's NORMSINV() function to find the correct critical value for the given level. Round "z" value to 2 decimal places.)

Reorder point

b. Suppose the production manager is asked to reduce the safety stock of this item by 55 percent. If she does so, what will the new service probability be? (Use Excel's NORMSDIST() function to find the correct probability for your computed Z-value. Round "z" value to 2 decimal places and final answer to 1 decimal place.)

Service probability %

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93127388

Have any Question?Write your Review or question?

Related Questions in Operation Management

Journalyour final project consists of creating a

Journal Your final project consists of creating a presentation that highlights the challenges of expanding your company into a new country. The following criteria must be included: Background of company and of country Cu ...

Business intelligence information systemschapter 7 networks

Business Intelligence Information Systems: Chapter 7: Networks: Mobile Business For the below Discussion Questions need Discussion Answers 300 words, 3 refernce each separately,APA 6 edition citation. 1. Discussion Quest ...

Identify a company that you are familiar with and provide

Identify a company that you are familiar with and provide one example of a commodity product that they use. Apple Write a 300-word paperDefine the elements of e-Procurement employed with the commodity supplier. ERP/MRP s ...

1 with the growth of the internet travel agents have to

1. With the growth of the Internet, travel agents have to work harder to get and maintain business. Discuss the value of using a travel agent (versus booking travel online) Why would a travelers or company use a travel a ...

Crestview sells a particularly popular christmas card once

Crestview sells a particularly popular Christmas card once a year and distributes the cards to gift shops. It costs Crestview $0.5 per card to order from a printing company, and Crestview receives $1.0 for each card sold ...

1 research and discuss why project management is important

1. Research and discuss why project management is important for the Software Development Life Cycle (SDLC). 2. What can IKEA benefit from, from utilizing a Social Media Customer Care Strategy? What are the tips that you ...

1 what is the risk management strategies of running in the

1. What is the risk management Strategies of running in the Peachtree Marathon next year? Are the risk management Strategies low, medium, or high? Is the impact low, medium, or high? Is the probability low, medium, or hi ...

Assignment organizational fitselecting and hiring a new

Assignment : ORGANIZATIONAL FIT Selecting and hiring a new employee involves comparing many candidates' skills and experience. However, the candidate with the strongest abilities and credentials is not always the best pe ...

1 do tough conversations impact trustwhy is trust hard to

1. Do tough conversations impact trust? Why is trust hard to establish, maintain, or rebuild? What are things you can do to rebuild trust in a team when it has been damaged? (Please answer in 4-5 Sentences) 2. What is th ...

Please include at least 1 referenceemployee engagement has

Please Include At Least 1 Reference Employee engagement has become popular in HRM these days. Measuring it and determining whether a company’s employees are “engaged” are actually vendor services for which companies pay ...

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