Practice Problem 1. Consider the following information for a product: Lead time is 3 weeks. The...
Practice Problem 1. Consider the following information for a product: Lead time is 3 weeks. The average weekly demand is 1500 and weekly standard deviation is 300. If company wants to have cycle service level of 90%. What should the safety stock be?
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Safety stock is helpful to tackle the unexpected demand, demand variation and fluctuation in stock prices etc.
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Practice Problem 1. Consider the following information for a
product: Lead time is 3 weeks. The...
*need to be solved manually, not with the NORMINV excel formula. All the solution to my...
*need to be solved manually, not with the NORMINV excel formula. All the solution to my practice problems use the excel way of solving them and I won't have access to excel during the exam, therefore they have to be done manually* Consider the following information for a product: Lead time is 3 weeks. The average weekly demand is 1500 and weekly standard deviation is 300. If company wants to have cycle service level of 90%. What should the safety...
1. A specific product has demand during lead time of 350 units, with a standard deviation...
1. A specific product has demand during lead time of 350 units, with a standard deviation during lead time of 80 units. Management wants a 99% service level. a) What value of Z should be applied? b) How many units should be carried as safety stock? c) What is the appropriate reorder point?
A retailer sells Rocky Flier football dolls. The 2 weeks lead time demand is normally distributed...
A retailer sells Rocky Flier football dolls. The 2 weeks lead time demand is normally distributed with a mean of 384.61 dolls and standard deviation of 196.11 dolls. The ordering cost is $20 per order, and the holding cost is $2 per doll per year. What is the economic order quantity? How many cycles are there on the average per year? For a service level of 0.955, find the re-order point and the safety stock. Management estimates the shortage cost...
A brand of soap has a lead time of eight weeks to reorder, a weekly average...
A brand of soap has a lead time of eight weeks to reorder, a weekly average usage of 20 units and a weekly standard deviation of 8 units. The reorder point for this soap, assuming a 99% service level (z-score = 2.33)
Tune Football Helmets Company is considering changing its current inventory control system for football helmets to...
Tune Football Helmets Company is considering changing its current inventory control system for football helmets to a fixed-period inventory system. The information regarding the helmets is a follows: Demand = 200 units/week Lead time = 3 weeks Order cost = $60 /order Unit cost = $80 Carrying charge rate = 0.075 Desired service level = 90% Standard deviation of weekly demand = 40 Number of weeks per year = 52 a. Assuming no-safety stock is required, what is the economic...
Demand during lead time for one brand of TV is normally distributed with a mean of...
Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for 90% service level? What is the appropriate reorder point? Click the icon to view the normal table What safety stock should be carried for a 90% service level? Safety stock units (round your response to the nearest whole number).
GG finds that the demand is really uncertain. The typical leadtime for supply is 9 weeks....
GG finds that the demand is really uncertain. The typical leadtime for supply is 9 weeks. The standard deviation of demand during the leadtime is 120. If GG wants to provide 95% cycle service level, what should be the safety stock and reorder level? Show calculations to get credit.
1. Linda L. is in charge of maintaining hospital supplies at General Hospital. During the past...
1. Linda L. is in charge of maintaining hospital supplies at General Hospital. During the past year the lead-time when ordering the BX-5 bandage was six weeks. Monthly (four weeks) mean demand was 300 and monthly standard deviation of the demand was 27 units. 1.1 What is the reorder point needed to maintain a cycle service level of 99%? a. NORMINV(.99,300,27) b. NORMINV(.99,300*4/6, 27*4/6) C. NORMINV(.99, 300*6/4,27*6/4) d. None of the above 1.2 Note the additional information: It costs $1.50...
M7_IND5. Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a s...
M7_IND5. Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. a) How much...
HighLife corporation has the following information: Average demand = 30 units per day Average lead time...
HighLife corporation has the following information: Average demand = 30 units per day Average lead time = 40 days Item unit cost = $45 for orders of less than 400 units Item unit cost = $40 for orders of 400 units or more Ordering cost = $50 Inventory carrying cost = 15% The business year is 300 days Standard deviation of demand during lead time = 90 Desired service level = 95% What is the TAC at $40/unit?
Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for 90% service level? What is the appropriate reorder point? Click the icon to view the normal table What safety stock should be carried for a 90% service level? Safety stock units (round your response to the nearest whole number).
1. Linda L. is in charge of maintaining hospital supplies at General Hospital. During the past year the lead-time when ordering the BX-5 bandage was six weeks. Monthly (four weeks) mean demand was 300 and monthly standard deviation of the demand was 27 units. 1.1 What is the reorder point needed to maintain a cycle service level of 99%? a. NORMINV(.99,300,27) b. NORMINV(.99,300*4/6, 27*4/6) C. NORMINV(.99, 300*6/4,27*6/4) d. None of the above 1.2 Note the additional information: It costs $1.50...
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