Question

1. The WJC purchases denim. The avg. daily demand of western is 1000 yards and the SD is 50. The cost of ordering denim from the textile is $500 per order. It costs western .35 per yard annually to hold a yard of denim in inventory. The lead time is a week and the company opens 365 days a year. Furthermore, the company adopts a fixed order quantity inventory system and wants to maintain 97% service level (z=1.90)?

What is the safety stock?

2. Katherine Evans is the sole employee of the Springfield dept of motor vehicles complaint desk. The DMV has an irate customer arrives every 5 minutes on average, and the customer takes an average of 4 min to be directed to another line.

What percentage of time is Katherine Idle?

How long is the line?

How long do customer spend waiting on average?

Answer 1