Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 11, Problem 2PA
Summary Introduction
To determine: The firm’s stock-out probability for the week.
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Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean of 2,500 boxes and a standard deviation of 500. Demand is assumed to be stationary and the mean demand is used as forecast. Each order costs Wal-Mart $145 and holding cost per box per year is estimated at $1.5. Lead time is 2 weeks and the store manager has decided to review inventory every 4 weeks. (Assume a periodic review policy)
a. What is safety stock requirement for a service level of 90%?
b. What is the order-up-to level?
c. What is the total annual variable cost?
Assume the weight is 0.6 for the most recent period; 0.2 for the second most recent; 0.1 for the third most recent; and 0.1 for the fourth most recent period. Using the four-period weighted moving average technique to predict the demand in February 2019. Find the X and Y values.
Dt
Ft
Period
Demand
Four-period weighted Moving Average
2014
September
9400
October
10300
November
11200
December
4998
2015
January
9800
7209
February
9555
X
March
9800
Y
Group of answer choices
X = 9899.8; Y = 9778.2
X = 9312.8; Y = 9555.2
X = 9029.6; Y = 9312.8
X = 9555.0; Y = 9313.7
X = 9872.4; Y = 9029.4
Demand in each period is normally distributed with a mean of 100 and standard deviation of 50. Assuming demand across periods are independent, what is the standard deviation of the total demand over 4 periods?
Chapter 11 Solutions
Operations Management
Ch. 11 - Prob. 1CQCh. 11 - Prob. 2CQCh. 11 - Prob. 3CQCh. 11 - Prob. 4CQCh. 11 - Prob. 5CQCh. 11 - Prob. 6CQCh. 11 - Prob. 7CQCh. 11 - Prob. 8CQCh. 11 - Prob. 9CQCh. 11 - Prob. 10CQ
Ch. 11 - Prob. 11CQCh. 11 - Prob. 12CQCh. 11 - Prob. 13CQCh. 11 - Over time, consumers have less of a need for a...Ch. 11 - For 10 percent of the products in a category, a...Ch. 11 - Prob. 2PACh. 11 - Prob. 3PACh. 11 - Prob. 4PACh. 11 - Prob. 5PACh. 11 - Anvils Works requires, on average, 2800 tons of...Ch. 11 - Prob. 7PACh. 11 - Prob. 8PACh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Rob Honeycutt created Timbuk2 to offer consumers...
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