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)
10 |
5 |
15 |
20 |
Answer:
Given Data,
For the Service level 95%, Z Value = 1.64
Standard Deviation = 3
Lead time = 4 Days
Daily average Demand = 5
Formula for Calculating safety stock is = Z score X Standard Deviation X Square root of Lead Time
So, Safety stock = 1.64 X 3 X Square root of 4 = 9.84 =10
So, Correct Answer is A. 10
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...
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...
If daily demand is normally distributed with a mean of 15 and standard deviation of 5, and lead time is constant at 7 days, a 95% service level will require how much safety stock? 10 units 13 units 17 units 22 units 8 units
A store wants to ensure a shelf full of marshmallow peeps as the holiday season approaches. Daily demand for peeps is normally distributed with a mean of 25 and a standard deviation of 5. Lead time is 3 days and the store intends a 90% service level. What is their reorder point?
Kelly's Tavern serves Shamrock draft beer to its oustomers. The daily demand for beer is normally distributed, with an average of 35 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the local distributor is 15 days. Determine the safety stock and reorder point r the restaurant wants to maintain a 90% service level, what would be the increase in the safety stock ,a 95% service level were desired? (Roun...
5.* choose z value that is closest to your target value (A) Ned's chain of natural food stores sells shelled peanuts by the pound. Historically, Ned has observed daily demand is normally distributed with a mean of 233 pounds and a standard deviation of 27 pounds. Lead time is 14 days. If Ned wants a service level of 98.5%, what is the reorder point? (Note: Use two decimal place z-value.) (B) Ned's chain of natural food stores sells shelled peanuts...
An auto manufacturer produces two different versions of a vehicle, Regular and Hybrid, in its plant in Kentucky. Both vehicles use the same kind of tires, and each vehicle requires 5 identical tires (one of which is a spare tire). The purchasing department of the plant uses a (Q, R)-policy to manage the inventory level of the tires. The tires are ordered from an external supplier with a lead time of 3 days. The purchasing departments goal is to limit...
a gas company experiences variation in both demand for parts an in lead time in ordering them, the supply office notices normally distributed daily demand rate with a mean of 43 parts, and a standard deviation of 5.2. the replenishment lead time is normally distributed with a mean of 9 days and standard deviation of 4 days. A) if the daily demand and the lead time are independent, what reorder point should be established to provided a 95% level per...
If daily demand is normally distributed with a mean of 15 and standard deviation of 5, and lead time is constant at 4 days, a 90 percent service level (Z=1.29) will require how much safety stock? A. 7 units B. 10 units C. 13 units D. 16 units
1. What are the six assumptions of the EOQ model? 2. Average daily demand for a product is normally distributed with a mean of 25 units and a standard deviation of 4 units. Lead time is fixed at 20 days. What reorder point provides for a service level of 95 percent (z=1.65)?