Question

) The demand during the lead time is normally distributed with a méan of 40 and a standard deviation of 4. If they have calculated a reorder point of 46.60 units, what service level are they assuming? 9505 Service leve 2) The annual demand for a product has been projected at 2,000 units. This demand is assumed constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Whenever an is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. 60 units? of the What level of safety stock would give a reorder point of 3) Rose Arena is the production manager for a manufacturing firm that produces buggy whips and other items. The annual demand for a particular buggy whip is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. Rose decided to produce 200 units each time she started production of the buggy whips. If it took her 4 days to produces the 200 units, what was her production rate? 2. a.

Answer 1