A local company uses an average of 650 items a day. The daily usage has a...
A local company uses an average of 650 items a day. The daily usage has a standard deviation of
23. The manager is willing to accept no more than a 1% chance of a stock out. The lead-time is 14 days. (Assuming the distribution of usage is normal). What is the re-order point?
Homework Answers
Reorder point = lead time demand+ Standard deviation of demand during lead time = lead time*daily demand + z*Standard deviation of demand*sqrt(lead time)
= 14*650+normsinv(0.99)*23*sqrt(14) [ Service level = 99%]
= 9300.201124
Add Answer to:
A local company uses an average of 650
items a day. The daily usage has a...
Please kindly explain all the formulas and also how to find z value from service level...
Please kindly explain all the formulas and also how to
find z value from service level in steps
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Please kindly explain all the formulas and also how to
find z value from service level in steps
Question 5: (5 Points) A local company uses an average of 650 items a day. The daily usage has a standard deviation of 23. The manager is willing to accept no more than a 1% chance of a stock out. The lead-time is 14 days. (Assuming the distribution of usage is normal). What is the re-order point? Question 6: (5 Points) A...
suppose that usage of cooking oil at simons chicken fry is
normally distributed with an average of 15 gallonsday. Harry has
asked you to help him decide how to reorder cooking oil in order to
achieve a service level of 95%. lead time is six days. check of
stock reviewed that 20 gallons are on hanf
Suppose that usage of cooking oil at Simon's Chicken Fry is normally distributed with an average of 15 gallons/day and a standard deviation of...
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...
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how
do you get these answers?
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