EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 12, Problem 48P
Gainesville Cigar stocks Cuban agars 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?
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Table of Z-values for normal distribution:
Service level
Z-value
90%
1.29
91% 92% 93% 94% | 95% 96% 97% 98% 99%
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1.34
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1.48
1.56
1.75
1.88
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What is Alina Ltd’s optimum order quantity?
If the supplier guarantees a three (3) day delivery on any order that is placed, What is the re-order point?
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?
Chapter 12 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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