If the standard deviation of demand is six per week, demand is 50 per week, and...
If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?
Homework Answers
Safety stock refers to extra stock level that is maintained in order to eliminate the risk of shortage of stocks because supply and demand may vary. Safety stock is calculated based on the lead time and demand. Lead time refers to the time when the order is placed or produced till the time the item is ready for sale or delivery to the customers.
Since the lead time is unavailable, safety stock cannot be determined without the lead time data.
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If the standard deviation of demand is six per week, demand is 50 per week, and...
Sunny Side Up has an average demand of 12,000 eggs per week with a standard deviation...
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The demand at Charlottetown’s Queen Elizabeth Hospital for a specialized surgery pack is 70 per week....
The demand at Charlottetown’s Queen Elizabeth Hospital for a specialized surgery pack is 70 per week. The lead time from McKesson, its main supplier, is normally distributed, with a mean of five weeks for this product and a standard deviation of two weeks. A 95% weekly service level is desired. Find the ROP. Note: Round your final answer to the nearest integer.
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13.38. Kelly's Tavern serves Shamrock draft beer to its customers The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4 gallons. The lead time re- quired to receive an order of beer from the local distributor is 12 days. Determine the safety stock and reorder point if the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level...
A specific product has demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides an 85% service level? A. 133 B. 165 C. 26 D. 41 O E. 126
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