Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product. Lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand is also variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a. For a 90% service level, what is the ROP? b. What is the ROP for a 95% service level?
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Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product. Lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand is also variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars.
a. For a 90% service level, what is the ROP?
b. What is the ROP for a 95% service level?
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- gainesvile cigar stocks cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars.a) For a 90% service level, what is the ROP?b) What is the ROP for a 95% service level?c) Explain what these two service levels mean. Which is preferable?Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 8 weeks and a standard deviation of 2 weeks.Demand is also a variable and normally distributed with a mean of 150 cigars per week and a standard deviation of 23 cigars. 95% service level, what is the ROP?
- Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: Lead time is normally distributed with an average of 8 weeks and a standard deviation of 2 weeks.Demand is also a variable and normally distributed with a mean of 150 cigars per week and a standard deviation of 23 cigars. 90% service level, what is the ROP? The reorder point is _ cigars (round response to the nearest whole number).The Farmer’s Wife is a country store specializing in knickknacks suitable for a farm-house décor. One item experiencing a considerable buying frenzy is a miniature Holstein cow. Average weekly demand is 30 cows, with a standard deviation of 5 cows. The cost to place a replenishment order is $15 and the holding cost is $0.75/cow/year. The supplier, however, is inChina. The lead time for new orders is 8 weeks, with a standard deviation of 2 weeks. The Farmer’s Wife, which is open only 50 weeks a year, wants to develop a continuous review inventory system for this item with a cycle-service level of 90 percent.a. Specify the continuous review system for the cows. Explain how it would work in practice.b. What is the total annual cost for the system you developed?Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager would like you to determine a minimum-cost inventory plan for an upcoming mobile phone to be launched in the market. They have collected the following information: • Annual demand: 750 phones • Phone cost: $1,005 each• Phone RRP: $1,149 each• Net weight: 167 g each • Tare weight: 257 g each• Annual inventory holding cost: 27.5%• Cost per order to replenish inventory: $81.71• Annual in-transit holding cost: 10%• Freight rate (per kg): $8.10• Freight-related charges (per shipment): $276.50 (i.e. handling fee, dangerous good fee, and lithium battery fee)• Time to process order for freight: 2 day • Freight transit time: 5 days The manager wants you to determine the following information: a. Economic order quantityb. The total purchasing costc. The total ordering cost d. The total inventory holding coste. The total transportation cost (by weight)f. The total freight-related cost (by shipment) g.…
- Gainesville Cigar stocks Cuban cigars that have variablelead times because of the difficulty in importing the product:lead time is norma lly distributed with an average of 6 weeks anda standard deviation of 2 weeks. Demand is also a variable andnormally distributed with a mean of 200 cigars per week and astandard deviation of 25 cigars.a) For a 90% service level, what is the ROP?b) What is the ROP for a 95% service level?c) Explain what these two service levels mean. Which ispreferable?Lumumba Carpet Discount Store sells Super Shag carpet. The average daily customer demand for the carpet stocked by the store is normally distributed, with a mean daily demand of 30 metres and a standard deviation of 5 metres of carpet per day. The lead time for receiving a new order of carpet is 10 days. Advice the the store if they desire a reorder point and safety stock for a service level of 95%, with the probability of a stockout equal to 5%.Atech Service sells professional cleaning machines and scouring agents. They deliver the scouring agents to customers on a fixed weekly schedule. The annual demand is 1500 bottles; each with a value of $10. The fixed cost for each order placed at the supplier is $100. The lead-time is 2 weeks. a) Assuming that the holding cost is $10/year and bottle, calculate the economical ordersize? b) Calculate the reorder point
- Demand for a product is relatively constant at 5 units per day. Lead time for this product is normally distributed with a mean of 20 days and a standard deviation of 4 days. (a) What reorder point provides an 80 percent service level? (b) What reorder point provides a 90 percent service level? (c) If the lead time standard deviation can be reduced from 4 days to 1, what reorder point now provides 90 percent service? How much is safety stock reduced by this change?Bondi Restaurant orders special Styrofoam paper bags for its customers once a month and lead time is one week. Weekly demand for paper bags is approximately normally distributed with an average of 120 bags and a standard deviation of 25. Chez Paul wants at most a 3% chance of running out of paper bags during the replenishment period. If he has 150 bags in stock when he places an order, how many additional bags should he order? What is the safety stock in this case?Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service probability, what must the reorder point be? Note: 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. Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be? Note: Use Excel's NORM.S.DIST() function to find the correct probability for your computed z value. Round z value to 2 decimal places and final answer to the nearest whole percent.