OPERATIONS MGMT.-W/CONNECT (LL)>CUSTOM<
13th Edition
ISBN: 9781260234190
Author: Stevenson
Publisher: MCG CUSTOM
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Chapter 13, Problem 24P
One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it. The manager wants a probability of at least 96 percent of not having a stockout during lead time. The manager expects demand to average a dozen units a day and have a standard deviation of two units a day. Lead time is variable, averaging four days with a standard deviation of one day. Assume normality and that seasonality is not a factor.
a. When should the manager reorder to achieve the desired probability?
b. Why might the model not be appropriate if seasonality were present?
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Students have asked these similar questions
A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit
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Demand During
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Cumulaive
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120
0.01
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0.12
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0.35
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The following random numbers have been generated: 9, 78, 40, 41, and 99. (Note: Assume the random number interval
begins at 01 and ends at 00.)
Based on the given probabilty distribution, for the given random number the demand during the lead time is:
Random Number
9
78
40
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99
Demand
The average demand during the lead time is
(enter your response as an integer).
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and standard deviation of 30. How many trees should
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Chapter 13 Solutions
OPERATIONS MGMT.-W/CONNECT (LL)>CUSTOM<
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