Q-Mart wants to know what safety stock should be maintained for its Jumbo Flyer if J....

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Q-Mart wants to know what safety stock should be maintained for its Jumbo Flyer if J....

Q-Mart wants to know what safety stock should be maintained for its Jumbo Flyer if J. Flyer's daily demand is normally distributed with a mean of 5 and a standard deviation of 3, its lead time is 4 days and its service level is 95%? (choose the closest value)

Answer: 10

Q-Mart usually orders Jumbo Flyers in quantities of 10. Using the information from the previous question, when should a new order be placed? (choose the closest value)

When the stock on hand reaches 15 flyers (WRONG)
When the stock on hand reaches 20 flyers
When the stock on hand reaches 5 flyers
When the stock on hand reaches 10 flyers

business Operations-Management

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Answer 1

Answer #1

Correct answer is B. When the stock on hand reaches 20 flyers

As safety stock is 10 and ordered quantity is multiple of 10, a new order should be placed when the stock on hand reaches 20 flyers

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Answer 2

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