How do I calculate the safety stock increase (decrease) if Supplier A is replaced by Supplier B? Full image attached to the question

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

How do I calculate the safety stock increase (decrease) if Supplier A is replaced by Supplier B? Full image attached to the question

Given the following data, by how much will
safety stock increase (decrease) if Supplier
A is replaced by Supplier B?
25 days
Supplier A Lead
Time
Supplier B Lead
Time
Average Daily
Customer
Demand
Standard
Deviation of Daily
Customer
Demand
Mean Absolute
Deviation (MAD)
Desired Service
Level
Z Score for
Desired Service
Level
16 days
100 units per
day
15 units
25
97%
1.88
Transcribed Image Text:Given the following data, by how much will safety stock increase (decrease) if Supplier A is replaced by Supplier B? 25 days Supplier A Lead Time Supplier B Lead Time Average Daily Customer Demand Standard Deviation of Daily Customer Demand Mean Absolute Deviation (MAD) Desired Service Level Z Score for Desired Service Level 16 days 100 units per day 15 units 25 97% 1.88
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.