b. How many drives should be carried as a safety stock?c. What is the appropriate reorder point?KBased on available information, lead time demand for PC jump drives averages 46 units (normally distributed), with a standard deviation of 6 drives.Management wants a 90% service level. Refer to the standard normal table for z-values.a) What value of Z should be applied?1.281.042.061.65

Safety stock is a surplus of a product that is kept in the warehouse to avoid running out of stock.…

Answered: b. How many drives should be carried as…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Similar questions

The john equipment company estimates its carrying cost at 15% and its ordering cost at $90 per order. The estimated annual requirement is 78,000 units at a price of $4 per unit. (i). What is the most economical no. of units to order?(ii). No. of orders to be placed in a year.(iii). About how often will an order need to be placed?
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $25 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Total Cost (S) Order Size 25 40 50 60 100
SAFETY STOCK WITH PROBABILISTIC DEMAND Memphis Regional Hospital stocks a “code blue” resuscitation kit that has a normally distributeddemand during the reorder period. The mean (average) demand during the reorder period is 350 kits,and the standard deviation is 10 kits. The hospital administrator wants to follow a policy that results instockouts only 5% of the time.(a) What is the appropriate value of Z ? (b) How much safety stock should the hospital maintain?(c) What reorder point should be used?APPROACH c The hospital determines how much inventory is needed to meet the demand 95% of thetime. The figure in this example may help you visualize the approach. The data are as follows:m = Mean demand = 350 kitssdLT = Standard deviation of demand during lead time = 10 kitsZ = Number of standard normal deviations
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 48,400 units per year, an ordering cost of $3 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? _____________Units b. How many orders will be placed during the year? _____________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $__________
Describe the 3 differences between a fixed-quantity (Q) and a fixed-period (P) inventory ns4 a. system? Fixed Quality Inventory Fixed Period Inventory
Based on available information, lead time demand for PC thumb drives averages 49 units (normally distributed), with a standard deviation of 4 drives. Management wants a 95% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? b) How many drives should be carried as safety stock? units (round your response to the nearest whole number). c) What is the appropriate reorder point? units (round your response to the nearest whole number).
b. How many drives should be carried as a safety stock? c. What is the appropriate reorder point? K Based on available information, lead time demand for PC jump drives averages 46 units (normally distributed), with a standard deviation of 6 drives. Management wants a 90% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? 1.28 1.04 2.06 1.65
Romulo Drugstore sells 10 bottles of Paracetamol syrup Strawberry flavor 60 mL a day, and 15 bottles on holidays and weekends. It takes 5 days for the supplier to deliver the order; and on peak seasons and certain occasions, the supplier takes 10 days to deliver the ordered items. What should be the safety stock level of the said item? 20 bottles 25 bottles 100 bottles 175 bottles
Lancelot plc uses a certain material named “LANCE” in manufacturing its products. The materials are sold in sacks and for the quarter Lancelot uses 1200 sacks. The cost per sack is GHC95. It costs GHC150 to place an order whiles the special storage costs are GHC4 per sack. How many orders can the company place in the year using the optimal size? A. 2 B. 4 C. 6 D. 8 Reset Selection
Please do not give solution in image format thanku Yuliia is Guest Experience Director at the Lego store. Daily demand averages 450 kits, with a standard deviation of 50 kits. Lead time to receive new shipments is 12 days. Currently, the store policy is to have a level of service of 99.65%. How many units of safety stock will they need to carry? NOTE: This question is asking for SAFETY STOCK, not Reorder Point.
Please do not give solution in image format thanku Demand for Bartley's Baseball Gloves is 50 gloves per day, with a standard deviation of 5 gloves per day. It takes 12 days lead time to restock. Bartley wants to maintain a 93.7% level of service. How much safety stock does he need to carry? Hang on to 3 places beyond the decimal, properly rounded. Note that this question asks for SAFETY STOCK, not Reorder Point.
Average demand (µ) 480 Demand Standard deviation (σdLT) 35 Service level 85% Service level alternate 89% 1. What is the required safety stock at a 85 percent service level? ______ units 2. What is the reorder point? ______ units 3.What is the required safety stock at a 89 percent service level? ______ units 4. What is the additional safety stock? ______ units

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