8 0Question 24.In your role as production planner, you have experienced too many stock outs on one particular item. This item has 325 pints of demand during the lead time anda standard deviation during the lead time of 11.3 pints.Calculate the Safety Stock assuming a 5% risk level. (Keep two decimal places in your answer which should be a percentage)

Given- Demand during lead time = 325 pintsStandard Deviation during lead time = 11.3 pintsRisk Level…

Answered: Question 24 In your role as production…

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...

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1 Annual Demand (D) = 168,000 cases Daily Demand (d) = 380 cases COGS (C) = {c} cases Sd (Standard Deviation of Daily Demand) = 11 cases Stotal =550 cases Logistics Service Level = 93.32 % Lead Time =5 days What is the Safety Stock level at Logistics Service Level of the Golden Best ? What is the full ROP of the Golden Best at the Logistics Service Level ?
A restaurant uses 40 jars of a special sauce each week. The manager is willing to accept no more than a 0.62% risk of stockout. Average lead time is 3 weeks with a standard deviation of 0.5 weeks. Assume the distribution of usage is normal. Determine the ROP.
Saché, Incorporated, expects to sell 2,030 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 1,450 suits and a safety stock of 290 suits. Once an order is placed, it takes three days for Saché to get the suits in. How many orders does the company place per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Assume that it is Monday morning before the store opens, and a shipment of suits has just arrived. When will Saché place its next order? multiple choice Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item’s current characteristics are:Demand 1D2 = 15,080 units/yearOrdering cost 1S2 = $125.00/orderHolding cost 1H2 = $3.00/unit/yearLead time 1L2 = 5 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation of weekly demand of 64 units.a. Calculate the item’s EOQ.b. Use the EOQ to define the parameters of an appropriate continuous review and periodic review system for this item.c. Which system requires more safety stock and by how much?
Determine whether the following statements are true or false. Statement T or F 1. Raw material is the material purchased but not processed 2. MRP stands for MATERIAL REQUIREMENT PLANNING. 3. EOQ stands for Environmental Outsourcing Quality 4. For calculating EOQ Model Quantity discounts are not possible 5. A safety stock means that the stock is fully free of danger for people. 6. MRP is usually a computer software.
Daily demand for a product is 10 units. The standard deviation of demand during the review and lead time is 20 units. The review period is 30 days and the lead time is 14 days. At the time of review there are 150 units in stock. If the probability of stockout should not exceed 2%, how many units should be ordered?
Quantity to OrderDaily demand for a product is 10 units, with a standard deviation of 3 units. The review period is 30 days, and the lead time is 14 days. Management has set a policy of satisfying 98 percent of demand from items in stock. At the beginning of this review period, there are 150 units in inventory.How many units should be ordered?
Q1) Bullwhip effect can lead to stock shortages due to lack of proper information. Select one: a. True b. False Q2) The ability to track the location of the order is known as supplier visibility. Select one: a. False b. True
Osprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The cost to place orders with the supplier is $30/order; the demand averages 3 lures per day, with a standard deviation of 1 lure; and the inventory holding cost is $1.00/lure/year. The lead time form the supplier is 9 days, with a standard deviation of 3 days. It is important to maintain a 97 percent cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item. Refer to the standard normal table for z-values. 1. What order quantity should be used? 2. What reorder point should be used ? 3. What is the total annual cost of this inventory system?
A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was 0. The extra units produced are stored in a warehouse. The extra needed are subcontracted. Demand over the four quarters in estimated to be 868, 960,860, and833. production cost is $22 per unit, and inventory cost is $ 7 per unit. What is the production cost at this firm?
Daily demand for a product is 120 units, with a standard deviation of 30 units. The review period is 14 days and the lead time is 7 days. At the time of review, 130 units are in stock. If only a 1 percent risk of stocking out is acceptable, how many units should be ordered?
A product's demand in cach period follows a Normal distribution with mean of 50 and standard deviation of 6. The order up to level S is 225. Lead time is 3 periods. What is the Expected On hand Inventory? Show all formulas used. calculations and results. What is the stock out probability ? Show all formulas used, calculations and results.

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