There is a daily demand of 10 units with standard
deviation 3 unit.
The lead time is 14 days with the review period is 30 days.
The company set policy of 98% demand satisfaction from items in
stock.
Beginning inventory is 150 units.
How many units should be ordered?
Given:
Daily demand = 10 units
Mean monthly demand (d) = 10 *30 units / month = 300 units per month
std deviation (sd) = 3 units per day = 3*30 units / month = 90 units/ month
Lead Time (L) = 14 days
Service level = 98%
z value corresponding to service level 98% = normsinv (0.98) = 2.054
Safety Stock = z value * standard deviation along lead time
Safety Stock (SS) = z* sd = 2.054 * 90 = 184.86 units
Reorder point ( R) = dL + SS = (300*14) + 184.86 = 4200 + 184.86 = 4384.86 units
Beginning inventory (BI) = 150 units
Hence no of units which must be ordered = R – BI = 4384.86 – 150 = 4234.86 units
There is a daily demand of 10 units with standard deviation 3 unit. The lead time...
Daily demand for a product is 100 units, with a standard deviation of 15 units. The review period is 20 days and the lead time is 10 days. At the time of review, there are 50 units in stock. If 98 percent service probability is desired, how many units should be ordered? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Ordered quantity units
Daily demand for a product is 100 units, with a standard deviation of 15 units. The review period is 20 days and the lead time is 10 days. At the time of review there are 50 units in stock. If 98 percent service probability is desired, how many units should be ordered? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final...
Problem 11-20 (Algo) Daily demand for a product is 170 units, with a standard deviation of 30 units. The review period is 5 days and the lead time is 2 days. At the time of review, there are 20 units in stock. If 95 percent service probability is desired, how many units should be ordered? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Ordered...
Problem 11-20 (Algo) Daily demand for a product is 110 units, with a standard deviation of 20 units. The review period is 5 days and the lead time is 6 days. At the time of review, there are 50 units in stock. If 90 percent service probability is desired, how many units should be ordered? (Use Excel's NORM.S.INVO function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Ordered...
Problem 11-20 Daily demand for a product is 100 units, with a standard deviation or 15 unts The review peniod is 20 days and the lead time is 10 days. At the time of review there are 50 units in stock If 98 percent service probability is desired, how many units should be ordered? (Use Excet's NORMSINVO function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "r value to 2 decimal places...
nt Weeks Served Help Save & Exit Submit 5 days Daily demand for a products 90 units, with a standard deviation of 30 units. The review period is 20 days and the lead time At the time of review, there are 20 units in stock. If 98 percent service probability is desired, how many units should be ordered? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest...
An item is being managed using a fixed time period model with safety stock. Assume weekly demand = 75, the review cycle = 3 weeks, safety stock = 32 units, and the company operates 50 weeks per year. Inventory turns for the item = 0 21 0 26 O 32 O 35 Daily demand for a product is 22 units with a standard deviation of 6 units. The review period is 35 days and the leadtime is 14 days. Management...
ABC Convenient stores uses fixed-time period model to determine order quantity for their popular chewing gum (Supergum). Daily demand for Supergum is 100 units with a standard deviation of 20 units. The review period is 10 days and lead time is 6 days. At the beginning of this review period there are 50 units in stock. If 98% service probability is desired, how many units should be ordered?
An item that is managed with a periodic review system has average daily demand of 60 units with a standard deviation of 2. The order interval for this item has been set at 10 days. Lead time for this item averages 5 days, with a standard deviation of 0.5 days. Acceptable stockout risk has been established as 2.5%. At the latest count, there are 480 units in inventory. How many units should be ordered?
QUESTION 30 Lead time for computers is 5 days with daily demand of 25 and safety stock of 5 computers. If management wants to use 18 kanbans how many computers should each one hold? lead time 5 days daily demand 25 units per day safety stock 5 units number of kanbans 18 Excel Access